Ken Blocks Hoonigan files for bankruptcy [Video]

The Hoonigan company made famous by the late stunt driver and automotive YouTube star Ken Block has filed for Chapter 11 bankruptcy protection in the United States (US).

Hoonigan is an automotive aftermarket company – selling wheels, suspension and other components – with a number of brands including Fuel Off-Road, KMC, Morimoto, TeraFlex, Rotiform, and Black Rhino.

The Denver, Colorado, based company has announced it has filed for a Chapter 11 bankruptcy – a step typically taken to allow a distressed company to restructure – in the US state of Delaware.

It includes a proposed Restructuring Support Agreement (RSA) with debtholders to eliminate $US1.2 billion ($AU1.8 billion) of debt.

The restructure also looks to free up around $US570 million ($AU857 million) in capital including a motion to approve a $110 million term loan debtor-in-possession (DIP) facility and a $175 million ABL (Asset-based Lending) DIP facility.

A DIP is a fund a company …