Auto parts maker Chassix Holdings Inc. won final court approval of its restructuring plan on Thursday, after reaching a broad settlement with its major creditors last month, the Wall Street Journal reported on Friday. Bankruptcy Judge Michael Wiles said that he would sign off on the plan, following a day-long hearing in which several of Chassix’s financial professionals testified that the plan provides the best path forward for the company. The plan has the support of private-equity firm Platinum Equity Advisors, which owns Chassix, as well as holders of the company’s secured bonds and about 85 percent of its unsecured bonds. Chassix announced a couple weeks ago that it had struck a new restructuring deal supported by the majority of its creditors. Chassix’s overall strategy in bankruptcy is to convert more than $500 million in debt into equity in a reorganized company. The new deal significantly enhanced recoveries to three classes of the company’s unsecured creditors. Unsecured trade creditors are now expected to recover between 35 percent and 40 percent of the $31 million they are owed, according to court papers. Other unsecured creditors are slated to recover 10 percent.
