Icahn Enterprises announces Auto Plus business files for Chapter 11

Icahn Enterprises announced that IEH Auto Parts and its subsidiaries, collectively Auto Plus, has been negatively impacted by lessened demand, supply chain disruptions, an inflationary environment and the effects of COVID-19. Therefore, Auto Plus determined to file a voluntary Chapter 11 case. The company said this proceeding is limited to Auto Plus and will not have a significant impact on IEP.. Since acquiring Auto Plus, IEP has invested significantly in transformation and restructuring initiatives and has loaned significant amounts to Auto Plus but has obviously been disappointed in the results of these investments and the continued losses that Auto Plus has experienced. As a result, IEP has determined that it would no longer be prudent to continue to loan money to Auto Plus at this juncture unless done in connection with a restructuring process. Auto Plus expects to continue to operate its business in the ordinary course and also plans to run a sale process for substantially all of its assets during the chapter 11 case.