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Chassix Receives OK to Access $250MM in DIP Financing

April 13, 2015, 08:08 AM
Filed Under: Bankruptcy

Chassix Holdings, Inc. announced that the Company and its U.S. subsidiaries have received approval from the United States Bankruptcy Court for the Southern District of New York (the “Court”) to access the full amount its $250 million in committed debtor-in-possession (“DIP”) financing. The Company had previously received interim approval from the Court to access up to $205 million of the DIP financing. The Court also granted final approval for several other orders that, among other things, enable Chassix to continue normal business operations.

“With the Court’s approval of our $250 million DIP financing, Chassix now has access to $45 million of additional liquidity that will help ensure that business operations continue in the ordinary course,” said Mark Allan, Chassix Chief Executive Officer. “Throughout this process, we remain fully committed to continuing to provide our customers with high-quality products and services without interruption, and we deeply value their ongoing support. This progress would not be possible without the dedication of our employees, who continue to work hard every day.”

As previously announced, on March 12, 2015, Chassix and its U.S. subsidiaries voluntarily filed for relief under Chapter 11 of the United States Bankruptcy Code to implement a pre-negotiated financial restructuring plan. The plan, which has received support from 80% of its unsecured bondholders and 71.5% of its senior secured bondholders, its existing sponsor, and all of its largest customers, is intended to enhance the Company’s financial strength and position it to move forward as a robust, well-capitalized global automotive supplier. Chassix’s operations outside the United States are not included in the Chapter 11 proceedings. The Court has set a hearing date of April 23, 2015 to consider approval of the Company’s Disclosure Statement.

Weil, Gotshal & Manges LLP is serving as legal counsel and Lazard Freres & Co. LLC is serving as financial advisor to Chassix. FTI Consulting is providing interim management services to Chassix, including operational evaluation, business plan development and strategy implementation.

Chassix represents a $1.4 billion, privately held automotive supplier of precision casting and machining solutions. The brand was launched in 2013 following the integration of the businesses of SMW Automotive, LLC and Diversified Machine, Inc. The company is focused on delivering high-quality, precision ductile iron and aluminum chassis components, with more than 4,500 employees in 26 locations in every key region of the world.

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