We advised Strategic Value Partners in connection with Wheel Pros’ chapter 11 proceedings

Davis Polk advised Strategic Value Partners, LLC (SVP) and certain of its managed funds in connection with the restructuring of Wheel Pros, LLC. SVP was a prepetition lender to Wheel Pros under various secured debt facilities. Through Wheel Pros’ chapter 11 cases, SVP acquired a majority of Wheel Pros’ common equity alongside other equitizing lenders.

On September 8, 2024, Wheel Pros, LLC and certain of its subsidiaries filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The chapter 11 cases were supported by the overwhelming majority of Wheel Pros’ secured creditors and effectuated the elimination of approximately $1.2 billion of Wheel Pros’ debt and the incurrence of a $500 million exit term loan facility and $175 million exit asset-based revolving loan facility. Wheel Pros received confirmation of its plan on October 15, 2024, and emerged from chapter 11 on December 2, 2024.

Doing business as Hoonigan, Wheel Pros provides automotive-related entertainment content and vehicle enhancements including wheels, suspension, lighting and accessories. Wheel Pros is headquartered in Greenwood Village, Colorado, and has distribution centers in North America, Australia and Europe.

The Davis Polk restructuring team included partners Damian S. Schaible and Adam L. Shpeen and associates Timothy H. Oyen, David Kratzer and Luke F. Porcari. Partners William J. Chudd and Darren M. Schweiger and counsel Heather Weigel provided corporate advice. Partner Lucy W. Farr and counsel Tracy L. Matlock provided tax advice. All members of the Davis Polk team are based in the New York office.

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