Grede Foundries files for bankruptcy protection - Triangle Business Journal:

proklofuxaanygez.blogspot.com
Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and manager of privats investment funds with more than $5 billion in has offered to provide a $45 milliom temporary loan facility to allow time for an orderluy sale under the supervision of the Bankruptc Court. Since 1992, Wayzata has invested more than $12 billiomn in more than 600 investments. The made Tuesday in the U.S. Bankruptcy Court for the Westerj Districtof Wisconsin, was driven by the impactr of the current economic downturn on the compant and its customers, particularly the automotive industry, said Richard Koeningas chairman of the board of directorx for Wauwatosa-based Grede.
The reorganization and asseft sale is expected to position the compant for a turnaround as the country emergesa from the most difficult economic period it has seen in he said. “The significant deteriorationh in the automotive and construction industries and the resultingt impact on our company and the foundry industry in generapl require that we take this strategic Koenings said. “We have carefullg explored many options, and believe a sale to a strongh financial backer like Wayzata is the best way to effectivelh proceed in what has been an exceedinglygdifficult marketplace.
” Koenings stressed that Grede Foundries remains in businessz and that jobs will remain duriny the transition. “This move gives us the time to restructurr while we continue to do businesd and operateour plants,” he “Grede will continue to buy goods and servicess from its vendors, support its work forcwe and provide its customers with the same qualityh products and service they’ve come to expect from us. Our goal is to preserve and strengthen our business so that we can compete successfully inthe future.” Wayzata has also agreedc to make the first bid, oftenb called a “stalking bid, for Grede.
“Wayzata’s commitment shows their belieg in the strength of the Greder name and its respected positio in thefoundry industry,” Koenings said. Salesx of businesses in bankruptcy proceedings are oftenm structured where one company makesa the initial bid foranother company’s assets. Under rulezs approved by the court, higher offers from thirdr parties can be submitted ascompeting bids. The “stalkingg horse” arrangement helps ensure that Grede receives the best valud for its assets and allows for offers that are best for the creditors while preserving the business companymanagement said.
Grede said that it has already receiveds inquiries from other parties that are interestexdin Grede’s production capacity. Koeningzs said Grede expects the sale and related bidding proces to move steadily through thecourft system. “We are deepl committed to doing everything necessary to put our company on solid footing as the nationh begins to rise out of the worst economif conditions since theGreat Depression,” he said. “Ourr customers very clearly want us to succeexd and have been very Grede announced in May that it had laid off 81 employeesa from its foundry in Wauwatosa since the endof January. In the company revealed plans to close its foundryin Greenwood, S.C.