Stalking horse – ATD enters asset purchase agreement with lender group

American Tire Distributors, Inc. (ATD) announced on 27 November that it has made a preliminary agreement to sell its assets to a buyer backed by some of its major lenders. Specifically, the company has entered into a ‘stalking horse’ asset purchase agreement (APA). The lenders supporting the buyer entity include investment groups and funds managed by companies like Guggenheim Partners, KKR, Monarch Alternative Capital, Sculptor Capital, and Silver Point Capital. In a statement announcing the transaction, ATD collectively refers to these lenders as the ‘Ad Hoc Lender Group’.