American Tire Distributors, Inc. announced that it has successfully completed its financial recapitalization and emerged from Chapter 11.

The company says it is in a stronger position, having reduced its debt by approximately $1.1 billion.

In previous statements, the company has said that its Canadian National Tire Distributors (NTD) subsidiary operations have not been part of the Chapter 11 process.

In connection with emergence from Chapter 11 procedings, ATD is issuing payment for all pre-petition obligations currently due. The company recapitalized on a fully consensual basis, with the support of all of its key financial stakeholders, as well as its vendors and customers, and moves forward with $1.005 billion of committed exit financing arranged by Wells Fargo Capital Finance to support operations and future growth initiatives.

With its recapitalization complete, ATD is moving forward as the largest wholesaler in the replacement tire industry.

It offers an unparalleled selection of more than 50,000 SKUs, data-driven technologies to maximize customer profits, industry-leading technology platforms, state-of-the-art logistics and a variety of marketing support programs.

Looking ahead, ATD is continuing its transformation to create even more value for customers and manufacturers through digital tools powered by advanced analytics. The Company intends to continue driving growth, generating strong cash flows and deepening its value proposition for its customers and manufacturer partners by investing in the strategic initiatives, technologies and talent that are fueling its transformation.

“Today marks a new beginning for ATD. We are a stronger company with the financial flexibility to build on an 80-year history of leadership and innovation,” said Stuart Schuette, Chief Executive Officer of ATD. “We are laser-focused on delivering greater value for our customers and manufacturer partners, with differentiated capabilities based on advanced analytics. Our ongoing transformation means that ATD will remain the most connected and insightful automotive solutions provider for decades to come.”

Mr. Schuette continued, “All of us at ATD would like to thank our customers and manufacturer partners for their continued support. I also am deeply grateful to our team of more than 5,000 associates across North America. They are the most dedicated and experienced professionals in the industry. They live our values every day by focusing their full attention on keeping our customers thriving and driving into the future.”

Kirkland & Ellis LLP is serving as legal counsel to ATD, AlixPartners LLP is serving as operational advisor and Moelis & Company LLC is serving as financial advisor.