Case Doc 4 Filed 10/04/18 Page 1 of 6

Transcription

1 Case Doc 4 Filed 10/04/18 Page 1 of 6 IN THE UNITED STATES BANKRUPTCY COURT X012 ~'~I~ DISTRICT OF DELAWARE ) In re: ) Chapter 11 ATD CORPORATION, et al.,' ) Case No ~) Debtors. ) (Joint Administration Requested) DEBTORS' MOTION FOR ENTRY OF AN OKDER (I) AUTHORIZING THE DEBTORS '~'O FILF, A CONSOLIDATED LIST OF CREDITORS IN LIEU OF SUBMITTING A SEPARATE MAILING 1VIATRIX FOR EAC~I DEBTOR, (II) LIMITING NOTICE REQUIRED UNllER BANKRUPTCY RULE 2002, AND (III) GRANTING RELATED RELIEF The above-captioned debtors and debtors in possession (collectively, the "Debtors") respectfully state as follows in support of this motion (this "Motion"):2 Relief Requested 1. The Debtors seek entry of an order (the "Order"), substantially in the form attached hereto as Exhibit A: (a) authorizing the Debtors to file a consolidated list of creditors in lieu of submitting separate mailing matrices for each Debtor; (b) limiting notice required under Rule 2002 of the Federal Rules of Bankruptcy Procedure (the "Bankruptc~ules"); and (c) granting related relief. The Debtors in these chapter 11 cases, along with the last four digits of each Debtor's federal tax identification number, where applicable, include: ATD Corporation (3683); Accelerate Holdings Corp. (0528); American Tire Distributors Holdings, Inc. (6143); American Tire Distributors, Inc. (4594); Rubbr Automotive Services, LLC (3334); The Hercules Tire &Rubber Company (3365); Terry's Tire Town Holdings, Inc. (7464); Tire Pros Francorp (1361); and Hercules Asia Pacific, LLC (2499). The location of the Debtors' service address in these chapter 11 cases is Herbert Wayne Court, Suite 150, Huntersville, North Carolina Z The facts and circumstances supporting this Motion are set forth in the Declaration of William Williarns, Chief Financial Officer of ATD Corporation, in Sac~port of Chapter 11 Petitions and First Day Motions (the "First Day Declaration"), filed contemporaneously with this Motion and incorporated by reference herein. Kr

2 Case Doc 4 Filed 10/04/18 Page 2 of 6 Jurisdiction and Venue 2. The United States Bankruptcy Court for the District of Delaware (the"court") has jurisdiction over this matter pursuant to 28 U.S.C. 157 and 1334 and the Amended Standing OrdeN of Reference from the United States District Court for the District of Delaware, dated February 29, The Debtors confirm their consent, pursuant to Bankruptcy Rule 7008, to the entry of a final order by the Court in connection with this Motion to the extent that it is later determined that the Court, absent consent of the parties, cannot enter final orders or judgments in connection herewith consistent with Article III of the United States Constitution. 3. Venue is proper pursuant to 28 U.S.C and The bases for the relief requested herein are sections 105(a), 107(b), and 521 of title 11 of the United States Code, 11 U.S.C (the "Bankruptcy Code"), Bankruptcy Rule 1007, and Rules (c), , , and Rule 9013(m) of the Local Rules of the United States Bankruptcy Court for the District of Delaware (the "Local Rules"). I3ack~round 5. The Debtors are the largest distributor of replacement tires in North America based on dollar amount of wholesale sales. With their network of over 140 distribution centers and 1,400 delivery vehicles, the Debtors service a geographic region covering more than 90 percent of the replacement tire market for passenger vehicles and light trucks in the United States. In addition, the Debtors' proprietary HerculesOO brand is the number one private tire brand in North America based on unit sales. The Debtors are headquartered in Huntersville, North Carolina. Non-Debtor affiliate National Tire Distributors Inc. and its subsidiaries operate on of the largest replacement tire distributors in Canada, with 23 distribution centers throughout the country. The Debtors and their non-debtor subsidiaries generated approximately $5.2 billion 2

3 Case Doc 4 Filed 10/04/18 Page 3 of 6 in revenue in fiscal year 2017 and currently employ approximately 5,500 people in the United States and Canada. As of the date hereof (the "Petition Date"), the Debtors have approximately $2.6 billion in funded debt. 6. On the Petition Date, each Debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The Debtors are operating their business and managing their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. Concurrently with the filing of this Motion, the Debtors filed a motion requesting procedural consolidation and joint administration of these chapter 11 cases pursuant to Bankruptcy Rule 1015(b). No request for the appointment of a trustee or examiner has been made in these chapter 11 cases, and no committees have been appointed or designated. Basis for Relief I. Request to File a Consolidated List of Creditors. 7. Local Rule (f~(v) requires each debtor, or its duly retained agent, in jointly administered cases to maintain a separate creditor mailing matrix. Local Rule (c) permits modification of the Local Rules by the Court "in the interest of justice." The Debtors submit that permitting them to maintain a single consolidated list of creditors (the "Creditor Matrix"), in lieu of filing a separate creditor matrix for each Debtor, is warranted. Requiring the Debtors to segregate and convert their computerized records to adebtor-specific creditor matrix format would be an unnecessarily burdensome task and result in duplicate mailings. 8. For this reason, the Court has granted relief similar to the relief requested herein since the modifications to Local Rule (fl(v) took effect. See, e.g., In re VER Technologies Holdco LLC, No (KG) (Bankr. D. DeL Apr. 6, 2018) (authorizing filing of consolidated list of creditors in lieu of separate mailing matrices); In re PES Holdings, LLC, No. 3

4 Case Doc 4 Filed 10/04/18 Page 4 of (KG)(Bankr. D. Del. Jan. 23, 2018) (same); In Ne ChaNming ChaNlie Holdings Inc., No (CSS)(Bankr. D. Del. Dec. 13, 2017) (same); In Ne GST AutoLeatheN, Inc., No (LSS)(Bankr. D. Del. Oct. 4, 2017) (same); In re Dex Media, Inc., No (KG) (Bankr D. Del. May 18, 2016) (same).3 IL Request to Limit Notice to Certain Creditors Under Bankruptc3~ Rule In the ordinary course of the Debtors' global business, the Debtors receive goods and services from both domestic and foreign vendors. While the Debtors have made a good faith effort to compile a consolidated list of their respective creditors, the Debtors do not possess the notice information for certain foreign vendors, and dedicating company resources to research such notice information would unnecessarily expend the Debtors' resources and distract the Debtors' management during the chapter 11 cases. 10. The Court is permitted under Bankruptcy Rule 2002(a) to limit notices required to be provided. Here, it is appropriate to limit notices required under Bankruptcy Rule 2002 to those creditors for which the Debtors are able to determine notice addresses after expending reasonable, good faith efforts. Notice 11. The Debtors have provided notice of this Motion to the following parties or their respective counsel: (a) the office of the U.S. Trustee for the District of Delaware; (b) the holders of the 30 largest unsecured claims against the Debtors (on a consolidated basis); (c) the agent under the Debtors' prepetition asset-based facility; (d) the agent under the Debtors' prepetition term loan facility; (e) the indenture trustee for the Debtors' senior subordinated notes; (~ the ad hoc committee for the Debtors' senior subordinated noteholders; (g) the ad hoc committee for the 3 Because of the voluminous nature of the orders cited herein, such orders have not been attached to this Motion. Copies of these orders are available upon request to the Debtors' proposed counsel.

5 Case Doc 4 Filed 10/04/18 Page 5 of 6 Debtors' prepetition term loan facility; (h) the United States Attorney's Office for the District of Delaware; (i) the Internal Revenue Service; (j) the office of the attorneys general for the states in which the Debtors operate; and (k) any party that has requested notice pursuant to Bankruptcy Rule As this Motion is seeking "first day" relief, within two business days of the hearing on this Motion, the Debtors will serve copies of this Motion and any order entered in respect to this Motion as required by Local Rule (m). The Debtors submit that, in light of the nature of the relief requested, no other or further notice need be given. other court. No Prior Request 12. No prior request for the relief sought in this Motion has been made to this or any [Remainder of page left intentionally blank. 5

6 Case Doc 4 Filed 10/04/18 Page 6 of 6 WHEREFORE, the Debtors respectfully request that the Court enter the Order granting the relief requested herein and such other relief as the Court deems appropriate under the circumstances. Dated: October 4, 2018 Wilmington, Delaware ~ura~bav~s ones (DE BarNo. 2436) Timothy P. Cairns (DE Bar No. 4228) Joseph M. Mulvihill (DE Bar No. 6061) PACHULSKI STANG ZIEHL &JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, Delaware (Courier 19801) Telephone: (302) Facsimile: (302) lj ones@pszj law. com tcairns@pszjlaw.com jmulvihill@pszjlaw.com - and - James H.M. Sprayregen, P.C. Anup Sathy, P.C. (pro hac vice pending) Chad J. Husnick, P.C. (pro hac vice pending) Spencer Winters (pro hac vice pending) KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Chicago, Illinois Telephone: (31 Z) Facsimile: (312) james.sprayregen@kirkland.com anup. sathy@kirkland. com chad.husnick@kirkland. com spencer. com PNoposed Counsel to the Debtors and Debtors zn Possession

7 Case Doc 4-1 Filed 10/04/18 Page 1 of 4 Exhibit A Proposed Order

8 Case Doc 4-1 Filed 10/04/18 Page 2 of 4 IN THE UNITED STATES BANK~tUPTCY COURT ~O~ '~'I-IE DISTRICT OF DELAWARE In re: ) Chapter 11 ATD CORPORATION, et al.,l ) Case No ~) Debtors. ) (Joint Administration Requested) Re: Docket No. _ ORDER (I) AUTHORIZING THE DEBTORS 'TO I'II.,E A CONSOLIDATED LIST OF CREDITORS IN LIEU OF SUBMITTING A SEPARATE MAILING MATRIX FOR EACH DE~3TOR, (II) LIMITING NOTICE REQUIRED UNllER BANKRUPTCY RULE 2002, AND (III) GRANTING RELATED RELIEF Upon the motion (the "Motion")2 of the above-captioned debtors and debtors in possession (collectively, the "Debtors") for entry of an order (this "Order"),(a) authorizing the Debtors to file a consolidated list of creditors in lieu of submitting separate mailing matrices for each Debtor, (b) limiting notice required under Bankruptcy Rule 2002, and (c) granting related relief, all as more fully set forth in the Motion; and upon the First Day Declaration; and this Court having jurisdiction over this matter pursuant to 28 U.S.C. 157 and 1334 and the Amended Standing ONdeN of Reference from the United States District Court for the District of Delaware, dated February 29, 2U 12; and that this Court may enter a final order consistent with Article III of the United States Constitution; and this Court having found that venue of this proceeding and the Motion in this district is proper pursuant to 28 U.S.C and 1409; and The Debtors in these chapter 11 cases, along with the last four digits of each Debtor's federal tax identification number, where applicable, include: ATD Corporation (3683); Accelerate Holdings Corp. (0528); American Tire Distt~ibutors Holdings, Inc. (6143); American Tire Distributors, Inc. (4594); Rubbr Automotive Services, LLC (3334); The Hercules Tire &Rubber Company (3365); Terry's Tire Town Holdings, Inc. (7464); Tire Pros Francorp (1361); and Hercules Asia Pacific, LLC (2499). The location of the Debtors' service address in these chapter 11 cases is Herbert Wayne Court, Suite 150, Huntersville, North Carolina Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Motion.

9 Case Doc 4-1 Filed 10/04/18 Page 3 of 4 this Court having found that the Debtors' notice of the Motion and opportunity for a hearing on the Motion were appropriate under the circumstances and no other notice need be provided; and this Court having reviewed the Motion and having heard the statements in support of the relief requested therein at a hearing before this Court (the "Hearing"); and this Court having determined that the legal and factual bases set forth in the Motion and at the Hearing establish just cause for the relief granted herein; and upon all of the proceedings had before this Court; and after due deliberation and sufficient cause appearing therefor, it is HEREBY ORDERED THAT: 1. The Motion is granted as set forth herein. 2. The requirements of Local Rule (a) and Local Rule (~(v) that separate mailing matrices be submitted for each Debtor are permanently waived, and the Debtors are authorized to submit a consolidated Creditor Matrix; pnovided that if any of these chapter 11 cases converts to a case under chapter 7 of the Bankruptcy Code, the applicable Debtor shall file its own creditor mailing matrix. 3. The Debtors are authorized to limit notices required under Bankruptcy Rule 2002 to those creditors for which the Debtors can determine notice addresses after expending reasonable, good faith efforts. 4. Notice of the Motion as provided therein shall be deemed good and sufficient notice of such Motion, and the requirements of Bankruptcy Rule 6004(a) and the Local Rules are satisfied by such notice. 5. Notwithstanding Bankruptcy Rule 6004(h), the terms and conditions of this Order are immediately effective and enforceable upon its entry. 6. The Debtors are authorized to take all actions necessary to effectuate the relief granted in this Order in accordance with the Motion. 2

10 Case Doc 4-1 Filed 10/04/18 Page 4 of 4 7. This Court retains exclusive jurisdiction with respect to all matters arising from or related to the implementation, interpretation, and enforcement of this Order. Dated:, 2018 Wilmington, Delaware United States Bankruptcy Judge