Released on October 8, 2009

Accuride Corp., Evansville, Ind., announced it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in order to restructure its existing debt.

According to a press release issued by Accuride, which produces both forged and cast aluminum automotive wheels, the company will continue to perform business as usual while it seeks approval for its restructuring plan and works its way through bankruptcy.

“Accuride's debt restructuring efforts are designed to create a sustainable capital structure that will support greater profitability,” said Bill Lasky, the company’s president, chief exectuvie officer and chairman of the board. “Accuride expects to quickly emerge from Chapter 11 having rationalized its capital structure and de-levered its balance sheet.”

Accuride reports that the proposed balance sheet restructuring entails an agreement with holders of its 8.5% senior subordinated notes and the steering committee of senior lenders under its credit agreement. The company intends to cancel the notes, and noteholders will receive 98% of the common stock of the reorganized company. Accuride also will amend its existing credit agreement to modify certain financial covenants and extend its maturity.

According to the company’s press release, the reorganized Accuride will complete a $140 million rights offering of new senior unsecured convertible notes to current noteholders. The company expects unsecured trade creditors to be unimpaired, and intends to pay their claims in full. Current stockholders are scheduled to receive 2% of the common stock of the reorganized Accuride and two-year warrants exercisable for 15% of the common stock of the reorganized company.

Accuride said its Canadian and Mexican subsidiaries are not included in the bankruptcy filing. To ensure that the company will continue conducting its business without interruption, it has secured a $50 million debtor-in-possession credit facility to be provided by certain of its senior lenders and noteholders.