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Transtar Holding Chapter 11 Petition, Plan Filed

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Privately-held Transtar Holding and more than 40 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 16-13245 (DACCO Transmission Parts).

The Company, which provides distribution and manufacturing of OE and aftermarket automotive products, is represented by Rachel C. Strickland of Willkie Farr & Gallagher. According to documents filed with the Court, “Due to, among other things, higher than anticipated difficulty related to the integration of the newly-acquired ETX’s businesses, the Company significantly underperformed in 2015. This underperformance is evidenced by a 2015 Consolidated EBITDA decline of 22% on a year over year basis and subsequent decline in last twelve month revenue of 2.8% for the end of the first quarter of 2016. This decline in revenue and earnings gave rise to a liquidity crisis at the Company, as well as to defaults of the financial covenants set forth in the First Lien Credit Agreement and Second Lien Credit Agreement.”

Concurrent with the Chapter 11 petition, the Company also filed a Joint Prepackaged Plan of Reorganization and related Disclosure Statement. The Disclosure Statement notes, “For purposes of the Plan and this Disclosure Statement, the Debtors and the Consenting First Lien Lenders have stipulated to the Settlement TEV of $350 million, implying Settlement Distributable Equity Value of approximately $45.3 million.” Transtar Holding’s Chapter 11 petition indicates assets greater than $500 million.

Read more Transtar bankruptcy news.

The post Transtar Holding Chapter 11 Petition, Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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