Debt-laden auto supplier Chassix Holdings Inc. entered its bankruptcy court confirmation hearing late last week with nearly unanimous creditor support for its Chapter 11 exit plan.
All four voting classes of Chassix creditors -- secured bondholders, unsecured bondholders, trade claim creditors and other general unsecured creditors -- either majority-approved the Chassix plan or did not submit valid ballots in their claims against Chassix or its 17 subsidiaries and joint ventures.
A lingering dispute with Indianapolis-based Allison Transmission Inc., which had wanted its litigation claims valued in the plan at more than $1.1 billion -- which would have given Allison decision-making power in its class of creditors -- was settled last week.
Two holders of a minority share in the $150 million unsecured bonds issued by Chassix -- PECM Strategic Funding LP and Benefit Street Credit Alpha Master Fund Ltd. -- still opposed the plan as of last week. It was not immediately clear how much they are owed, but four creditors in that class representing about $21.9 million in combined claims voted to reject the plan, according to the voter tabulation.
Chassix, which reported annual revenue of about $1.4 billion earlier this year, filed for Chapter 11 bankruptcy March 12, claiming it owes more than $525 million to bondholders and more than $65 million to other creditors including other auto suppliers, materials manufacturers and staffing companies.
The supplier of automotive chassis, brake and powertrain components is owned by Tom Gores' Platinum Equity LLC. The reorganization plan, largely a debt-equity swap, would give bondholders $375 million in secured debt 97.5 percent of stock in the reorganized company and another 2.5 percent stake to trade creditors and the unsecured bondholders.
Platinum retains no equity in the company if the plan is confirmed.