SUNNY
ISLES BEACH, Fla., Jan. 31,
2023 /PRNewswire/ -- Icahn Enterprises L.P.
(Nasdaq:IEP) owns or controls a number of companies that have been
quite successful over the years. However, in the case of IEH Auto
Parts Holding LLC and its subsidiaries (collectively, "Auto Plus"),
an aftermarket parts distributor held within the Automotive segment
of IEP, various factors have negatively impacted this business as
well as the industry in general, including lessened demand, supply
chain disruptions, an inflationary environment and the effects of
COVID-19. Therefore, on January 31,
2023, Auto Plus determined to file a voluntary chapter 11
case. 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.
Icahn Enterprises L.P., a master limited partnership, is a
diversified holding company engaged in seven primary business
segments: Investment, Energy, Automotive, Food Packaging, Real
Estate, Home Fashion and Pharma.
Caution Concerning Forward-Looking Statements
This release may contain certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, many of which are beyond our ability to control or
predict. Forward-looking statements may be identified by words such
as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates," "will" or words of similar meaning and
include, but are not limited to, statements about the expected
future business and financial performance of Icahn Enterprises and
its subsidiaries. Actual events, results and outcomes may differ
materially from our expectations due to a variety of known and
unknown risks, uncertainties and other factors, including risks
related to the Chapter 11 cases, including, but not limited to,
obtaining bankruptcy court approval with respect to the motions in
the Chapter 11 cases, the effects of the Chapter 11 cases on Auto
Plus and IEP, and on the interests of various constituents,
bankruptcy court rulings in the Chapter 11 cases and the outcome of
the Chapter 11 cases in general, the length of time Auto Plus will
operate under the Chapter 11 cases, risks associated with
third-party motions in the Chapter 11 cases, the potential adverse
effects of the Chapter 11 cases on Auto Plus's and IEP's liquidity
or results of operations; Auto Plus's ability to obtain debtor-in
possession financing and the amount, terms, and conditions of any
such financing; the effects of disruption from the Chapter 11 cases
making it more difficult to maintain business and operational
relationships, to retain key executives, and to maintain various
licenses and approvals necessary for Auto Plusto conduct its
business; the consequences of the acceleration of Auto Plus's debt
obligations, as well as economic downturns, substantial competition
and rising operating costs; risks related to the severity,
magnitude and duration of the COVID-19 pandemic and its impact on
the global economy, financial markets and industries in which our
subsidiaries operate; the impacts from the Russia/Ukraine conflict, including economic
volatility and the impacts of export controls and other economic
sanctions,; risks related to our investment activities, including
the nature of the investments made by the private funds in which we
invest, declines in the fair value of our investments as a result
of the COVID-19 pandemic, losses in the private funds and loss of
key employees; risks related to our ability to continue to conduct
our activities in a manner so as to not be deemed an investment
company under the Investment Company Act of 1940, as amended; risks
related to our energy business, including the volatility and
availability of crude oil, other feed stocks and refined products,
declines in global demand for crude oil, refined products and
liquid transportation fuels as a result of the COVID-19 pandemic,
unfavorable refining margin (crack spread), interrupted access to
pipelines, significant fluctuations in nitrogen fertilizer demand
in the agricultural industry and seasonality of results; risks
related to our automotive activities and exposure to adverse
conditions in the automotive industry, including as a result of the
COVID-19 pandemic; risks related to our food packaging activities,
including competition from better capitalized competitors,
inability of our suppliers to timely deliver raw materials, and the
failure to effectively respond to industry changes in casings
technology; supply chain issues; inflation, including increased
costs of raw materials and shipping, including as a result of the
Russia/Ukraine conflict; interest rate increases;
labor shortages and workforce availability; risks related to our
real estate activities, including the extent of any tenant
bankruptcies and insolvencies; risks related to our home fashion
operations, including changes in the availability and price of raw
materials, and changes in transportation costs and delivery times;
and other risks and uncertainties detailed from time to time in our
filings with the Securities and Exchange Commission. Additionally,
there may be other factors not presently known to us or which we
currently consider to be immaterial that may cause our actual
results to differ materially from the forward-looking statements.
Past performance in our Investment segment is not indicative of
future performance. We undertake no obligation to publicly update
or review any forward-looking information, whether as a result of
new information, future developments or otherwise.
Investor Contact:
Ted
Papapostolou, Chief Financial Officer
(305) 422-4100
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SOURCE Icahn Enterprises L.P.