A federal bankruptcy court has confirmed the reorganization plan for Accuride Corp., an auto parts producer. Among the details of the reorganization is a plan to close Accuride’s Gunite Foundry in Elkhart, IN, and consolidate operations at foundries in Rockford, IL, and Brillon, WI.
The reorganization plan will become effective on or about February 26, once all closing conditions have been met, according to a company statement. The Elkhart plant employs 225 workers, though that number had been somewhat higher as recent as 2006, according to local reports. The closing is scheduled for May 1.
Accuride filed a Chapter 11 claim in October 2009, following an agreement for a “balance-sheet restructuring” with certain noteholders and senior lenders. Chairman Bill Lasky explained at that time that the goal of the debt restructuring was “to create a sustainable capital structure that will support greater profitability and solidify the company’s position as the market leader in its product categories.”
"The reorganization plan will allow Accuride to emerge from Chapter 11, after only five months, with the financial flexibility necessary to ensure the continued pursuit of our strategic objectives," according to Lasky. "This new capital structure, coupled with the significant operational restructuring initiatives we have implemented, will position the Company for future growth and the continued leadership of our brands."
Accuride manufactures commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, seating assemblies and other commercial vehicle components. Its products are supplied under various brands, including Accuride, Gunite, Imperial, Bostrom, Fabco, and Brillion Iron Works.
Accuride's Reorganization Plan Approved
Gunite foundry in Elkhart, IN, to close May 1