American Tire Seeks Bankruptcy After Deal With Lenders (1)

American Tire Distributors Inc., which sought bankruptcy protection in 2018 after the defection of two major manufacturers, has filed for Chapter 11 again as it considers a sale process to cut debt.

The company made the voluntary filing in Delaware with $1.9 billion of debt, according to a court document. It has entered into a restructuring support agreement with lenders “that contemplates transitioning ownership of the company through a competitive sale process,” according to a statement.

The lender group, which represents 90% of the company’s term loan, is providing a so-called stalking horse bid, meaning that it’s subject ...