American Tire Files Bankruptcy to Cut Debt by $1.1 Billion (3)

American Tire Distributors Inc., buffeted by the defection of two big manufacturers, filed for Chapter 11 bankruptcy in Delaware after reaching a deal with most of its bondholders to cut about $1.1 billion of debt.

Bondholders will get equity in a new, reorganized version of the company through a plan that is still subject to court approval, according to the filing. The company said it has a deal for $250 million in new financing from a group of noteholders, including $200 million of incremental liquidity. The company said it will also retain access to its current $980 million revolving credit ...