This post was originally published on The Shop Magazine
Wheel Pros LLC (d/b/a Hoonigan) and certain of its North American-based affiliates have announced that the U.S. Bankruptcy Court for the District of Delaware has approved the company’s reorganization plan. With the approval, Hoonigan is positioned to emerge from its financial restructuring process in the near future with a stronger financial foundation, poised for continued industry leadership, according to company officials.
Through the approved plan, Hoonigan will eliminate approximately $1.2 billion of the company’s debt and will work to secure access to a $175 million asset-backed loan facility. Upon emergence, the company will be under the majority ownership of Strategic Value Partners, LLC (SVP) and Nut Tree Capital Management LP (Nut Tree), which recognize the potential of the automotive aftermarket industry and are committed to Hoonigan’s continued leadership in the sector, according to a press release announcing the update.
“Today marks an important step toward the completion of our financial reorganization,” said Vance Johnston, CEO of Hoonigan. “With the confirmation of our plan, we are on a clear path to invest in innovation and drive sustainable, long-term growth. We are incredibly grateful for the continued support of our financial partners, employees, vendors and customers through this process, and are excited to drive ahead under new ownership equipped with the financial resources and flexibility to lead our industry forward.”
The transactions contemplated under the plan remain subject to customary closing conditions. Hoonigan will continue to operate in the ordinary course of business for its customers, vendors and partners as it progresses forward, the release stated.
The court also approved the sale of the company’s 4 Wheel Parts (4WP) retail stores, associated e-commerce sites and certain other related assets to ORW USA Inc., the U.S. affiliate of ARB Corporation Limited. Hoonigan will continue to operate 4WP in the normal course through close of the sale, which is expected in the coming days.
