CLEVELAND, Nov. 21, 2016 /PRNewswire/ -- Transtar Holding Company, a distributor and manufacturer of aftermarket automotive products, today announced that it has entered into a Restructuring Support Agreement ("RSA") outlining the terms of a balance sheet restructuring that will strengthen the Company's financial position by reducing long-term debt and enhancing liquidity. The key terms of the RSA include a debt reduction of approximately $290 million and approximately $74 million in new money financing. The RSA is supported by holders owning more than 98.8% of the Company's first lien debt and the Company's equity sponsor. Following the restructuring, current holders of first lien debt will be the new equity owners of the Company. To facilitate these important changes to Transtar's capital structure, yesterday Transtar commenced a Chapter 11 proceeding in the U.S. Bankruptcy Court for the Southern District of New York to implement a "pre-packaged" plan of reorganization through a brief, court-supervised restructuring process. "Transtar will operate as usual, and our team remains committed to continuing to provide responsive service to our customers. It will be business as usual for us," said Edward H. Orzetti, CEO of Transtar Holding Company. "The actions we are announcing today represent an important and positive step forward in our efforts to strengthen Transtar's financial position. We will emerge from this restructuring as a stronger company with a more flexible capital structure. This will enable us to pursue our strategic growth plans as we make continued progress in enhancing our operations." Further information on Transtar is available by visiting the Company's website, www.transtar1.com. Willkie Farr & Gallagher LLP is serving as legal counsel, Ducera Partners is serving as investment banker and FTI Consulting, Inc. is serving as restructuring advisor to Transtar. About Transtar Holding CompanyTranstar is a worldwide manufacturer and distributor of quality driveline parts and services to the motor vehicle replacement parts industry; its Transtar brand is the leading distributor of world-class transmission solutions including automatic and standard transmission units, rebuilder kits and components, Recon™ remanufactured torque converters and hard parts, and other driveline solutions. Founded in 1975, the Transtar portfolio has ~2,300 associates and a distribution network of more than 90 locations in the USA, Canada and Puerto Rico. It also has an international division that serves a global network of aftermarket automotive distributors in 80 countries. www.transtar1.com.