Enters into Restructuring Support Agreement to Eliminate Approximately $1.2 Billion of Debt

Files Voluntary Prepackaged Petitions for Chapter 11 Relief to Implement Transaction

Global Operations Across Brands Expected to Continue Without Interruption During Chapter 11 Cases with All Unsecured Creditors to be Paid in Full

DENVER, September 08, 2024--(BUSINESS WIRE)--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 it has commenced an in-court financial restructuring process to position it to drive long-term growth. The Company has entered into a Restructuring Support Agreement ("RSA") with a majority of its debtholders through which it expects to eliminate approximately $1.2 billion of the Company’s debt and secure up to approximately $570 million of new capital, substantially improving the Company’s balance sheet and financial position.

"Today’s announcement marks an important step forward for Hoonigan that will enable us to advance our industry leading position in the growing automotive aftermarket sector," said Vance Johnston, CEO of Hoonigan. "With a significantly strengthened balance sheet and new capital, this transaction will position us to invest in innovation and further drive financial performance. With the strong support of our financial partners, we remain laser-focused on providing cutting-edge products and best-in-class service to our partners throughout this process."

In order to implement the RSA, Hoonigan has filed voluntary petitions for Chapter 11 relief in the U.S. Bankruptcy Court for the District of Delaware (the "Court"). As contemplated under the RSA, the Company expects to emerge under the majority ownership of a group of its current lenders, who recognize the potential of the automotive aftermarket industry and are confident in Hoonigan’s ability to continue to operate at its forefront. The RSA contemplates a swift in-court restructuring, with emergence from Chapter 11 anticipated within two months.

Importantly, the RSA provides for a consensual, prepackaged restructuring proceeding, including a motion seeking to approve $110 million term loan debtor-in-possession ("DIP") facility and a $175 million ABL DIP facility. The Company anticipates that this will allow the business to continue operating in the ordinary course during the restructuring without impacting trade creditors, customers, employees, vendors, or suppliers and will allow the Company to honor its commitments to strategic partners. Further, the Company’s operations outside of North America are not part of the Court-supervised restructuring process.