Hoonigan Secures Court Approval on Plan of Reorganization to Significantly Strengthen Capital Structure
Expects to Emerge from Financial Restructuring Process in the Near Future
Global Operations Continue Without Interruption as the Company Drives Toward Emergence
Court Approves Sale of 4WP Assets to ARB Corporation’s U.S. Affiliate, ORW USA
DENVER, Co. – October [15], 2024 – Wheel Pros, LLC (d/b/a Hoonigan) and certain of its North American-based affiliates (collectively “Hoonigan” or the “Company”), a leading provider of aftermarket vehicle enhancements, today announced that the U.S. Bankruptcy Court for the District of Delaware (the “Court”) has approved the Company’s Plan of Reorganization (“the Plan”). With this approval, the Company is positioned to emerge from its financial restructuring process in the near future with a stronger financial foundation, poised for continued industry leadership.
“Today marks an important step toward the successful completion of our financial reorganization,” said Vance Johnston, CEO of Hoonigan. “With the confirmation of our Plan, we are on a clear path to becoming a financially stronger company, well-positioned to invest in innovation and drive sustainable, long-term growth. We are incredibly grateful for the continued support of our financial partners, employees, vendors, and customers through this process, and are excited to drive ahead under new ownership equipped with the financial resources and flexibility to lead our industry forward.”
Through the approved Plan, Hoonigan will eliminate approximately $1.2 billion of the Company’s debt and is working to secure access to a $175 million asset backed loan facility. Upon emergence, the Company will be under the majority ownership of Strategic Value Partners, LLC (“SVP”) and Nut Tree Capital Management LP (“Nut Tree”), who recognize the potential of the automotive aftermarket industry and are committed to Hoonigan’s continued leadership in this sector.
The transactions contemplated under the Plan remain subject to customary closing conditions. The Company will continue to operate in the ordinary course of business for its customers, vendors, and partners as it progresses toward a successful emergence.
The Court also approved the sale of the Company’s 4 Wheel Parts retail stores, associated e-commerce sites, and certain other related assets (“4WP”) to ORW USA, Inc., the U.S. affiliate of ARB Corporation Limited. Hoonigan will continue to operate 4WP in the normal course through close of the sale, which is expected in the coming days.
Additional information regarding the Chapter 11 process is available at https://cases.stretto.com/WheelPros. Stakeholders with questions can contact the Company’s claims agent, Stretto, by calling (855) 371-7511 (U.S. toll free) or +1 (714) 716-1978 (International) or [email protected].
Advisors
Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP are serving as legal counsel, Houlihan Lokey, Inc. is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the Company.
Davis Polk & Wardwell LP is serving as legal counsel and Lazard is serving as investment banker to SVP.
Akin Gump Strauss Hauer & Feld LLP is serving as legal counsel and PJT Partners, Inc. is serving as investment banker to Nut Tree and certain other of the Company’s current lenders.
About Hoonigan
Hoonigan serves the automotive enthusiast industry with entertaining content and a wide selection of vehicle enhancements from its portfolio of lifestyle brands, including Fuel Off-Road, American Racing, KMC, Morimoto, TeraFlex, Rotiform, and Black Rhino. Utilizing its expanding global network of distribution centers spanning North America, Australia, and Europe, Hoonigan serves over 30,000 retailers. It has a growing e-commerce presence to provide enthusiast consumers with access to a variety of aftermarket enhancements including wheels, suspension, lighting, and accessories. More information is available at www.hoonigan.com.
About SVP
SVP is a global alternative investment firm that focuses on special situations, private equity, opportunistic credit and financing opportunities. The firm uses a combination of sourcing, financial and operational expertise to unlock value in its portfolio companies. Today SVP manages approximately $19 billion in assets under management, and since inception, has invested more than $48 billion of capital, including more than $18 billion in Europe. The firm, established by Victor Khosla in 2001, has over 200 employees, including more than 100 investment professionals, across its main offices in Greenwich (CT) and London, and a presence in Tokyo. Learn more at www.svpglobal.com.
Forward Looking Statements
This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Hoonigan and certain plans and objectives with respect thereto. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as “anticipate”, “target”, “expect”, “enable,” “estimate”, “intend”, “plan”, “goal”, “believe”, “hope”, “aims”, “continue”, “will”, “may”, “should”, “would”, “could”, or other words of similar meaning. These statements are based on assumptions and assessments made by the Company and its perception of historical trends, current conditions, future developments and other factors. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this document could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. The Company does not assume any obligation to update or correct the information contained in this document (whether as a result of new information, future events or otherwise), except as may be required by applicable law.
There are several factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market, supply chain and regulatory forces, future exchange and interest rates, changes in tax rates and any future business combinations or dispositions, uncertainties and costs related to the RSA and the Chapter 11 process, including, among others, potential adverse effects of the Chapter 11 process on the Company’s liquidity and results of operations, including with respect to its relationships with its customers, distribution partners, suppliers and other third parties; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties inherent in the Chapter 11 process, including due to any “prepackaged” Chapter 11 process; the impact of any cost reduction initiatives; any other legal or regulatory proceedings; the Company’s ability to obtain operating capital, including complying with the restrictions imposed by the terms and conditions of any DIP financing, such as the financing mentioned herein; the length of time that the Company will operate under Chapter 11 protection, including due to any “prepackaged” Chapter 11 process; the timing of any emergence from the Chapter 11 process; and the risk that any plan of reorganization resulting therefrom may not be confirmed or implemented at all. Please see the plan of reorganization and related disclosure statement (as may be amended, modified or supplemented) that may be filed with the Court for additional considerations and risk factors associated with the Company’s Chapter 11 process.
Nothing in this press release is intended as a profit forecast or estimate for any period and no statement in this press release should be interpreted to mean that the financial performance for the Company for the current or future financial years would necessarily match or exceed its historical results.
Further, this press release is not intended to and does not constitute and should not be construed as, considered a part of, or relied on in connection with any information or offering memorandum, security purchase agreement, or offer, invitation or recommendation to underwrite, buy, subscribe for, otherwise acquire, or sell any securities or other financial instruments or interests or any other transaction.
Media Contact
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