Auto Industry and Suppliers and Factories and Accuride Corp. and Manufacturers and Manufacturing & Technology

Accuride restructuring under Chapter 11 bankruptcy

October 8, 2009

Evansville-based Accuride Corp. filed for Chapter 11 bankruptcy protection Thursday as part of a restructuring of debt.

As part of the reorganization, the manufacturer of truck parts secured a $50 million loan to be provided by certain senior lenders and noteholders of the company.

Accuride, one of the state’s largest companies, maintained it will continue “business as usual” without any interruption to operations. 

“Accuride’s debt-restructuring efforts are designed to create a sustainable capital structure that will support greater profitability and solidify the company’s position as the market leader in its product categories,” Accuride President and CEO Bill Lasky said in a prepared statement.

The company warned in early August that it might seek bankruptcy protection if lenders refused to restructure debt. Accuride’s financial troubles date to at least last year. In September of 2008, directors accepted the resignation of former CEO John Murphy as the company laid off 392 employees.

Accuride had 3,500 employees at the end of 2008, with about 400 in Indiana.

The company reported a second-quarter loss of $36.1 million, or $1 per share, compared with profit of $3.4 million, or 10 cents per share, in the same period last year.

Company shares traded this morning at 35 cents each, down from 57 cents in early August.
 

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