The World's Largest Tire Dealer Back To Life

- Dec 07, 2018-

China Rubber Network has learned that ATD has been in business for 83 years and has an annual income of more than 5.2 billion US dollars (about 35.7 billion yuan), but since the beginning of 2018, the company's operation has been in difficulty.

In January 2018, Michelin (North America) and Sumitomo (Americas) reached an agreement to invest 50% to form a new tire sales company. The two parties will integrate their tire distribution business and establish a new brand NTW;

In April 2018, Goodyear and Bridgestone announced the joint establishment of the distribution company TireHub, which announced the termination of the direct supply relationship with ATD on the same day;

In June 2018, Bridgestone also issued a statement that it will no longer distribute its passenger car tires in the United States through ATD, and the deadline is July 31.

ATD has more than 40,000 specifications of tires that originally represented brands such as Bridgestone, Michelin, Goodyear, and German Horse. Since January, the “continuous strike” by major tire manufacturers has made this The company's stock price and other indicators should be dizzying, and the business situation becomes more and more difficult.

In September 2018, ATD released a message that, in view of the debt over-represented and its plan to reach a capital restructuring agreement with investors, ATD’s sub-bondholders will hold 95% of the company’s shares after the reorganization, that is, the company The actual control may be transferred to the bondholders.

According to local media reports, because the final form of debt restructuring “is still uncertain”, some creditors still do not agree to the reorganization agreement, and ATD may eventually consider filing a bankruptcy with the government.

Some industry analysts have analyzed that ATD is still a “pure, traditional distributor” in development. The company has not adapted to the dramatic changes in the tire sales market. Tire manufacturers are now thinking about expanding and updating their own. Product distribution channels, for example, actively develop Internet functions to directly contact consumers and expand their influence.

The creditors agree that the company is welcoming

Stuart Schuette, CEO of ATD, said in an interview on the 5th: "We are very pleased to receive support from the lending institutions for the agreed restructuring agreement. This is an important trust in our future business and operations. We intend to quickly pass this restructuring. Process and continue the continuous transformation of ATD to lead the transformation of our industry."

According to the announcement, ATD's debt has greatly improved its financial flexibility after the benefit reduced by approximately $1.1 billion. The new $250 million in new financing is also a huge support for the continued operation of ATD, in addition to the company's term loan. The financing period will also be extended by three years.

Stuart Schuette said that during the debt restructuring process, ATD will still guarantee uninterrupted operation and will provide quality services to consumers in the past 83 years. In addition, the tire manufacturers and partners will also pay in the near future. settle.