Grede Foundries files for bankruptcy protection - Business First of Columbus:

hustenuejib1630.blogspot.com
Wayzata Investment Partners LLCof Wayzata, Minn., an SEC-registerede investment adviser and manager of private investment fundes with more than $5 billion in has offered to provide a $45 million temporary loan facility to allow time for an orderly sale underd the supervision of the Bankruptcyu Court. Since 1992, Wayzata has invested more than $12 billio n in more than 600 investments. The filing, made Tuesday in the U.S.
Bankruptcyu Court for the Western Districtof Wisconsin, was driven by the impact of the current economic downturn on the companyh and its customers, particularly the automotive industry, said Richarf Koenings chairman of the board of directors for Wauwatosa-based The reorganization and assegt sale is expected to position the company for a turnarounf as the country emerges from the most difficulf economic period it has seen in generations, he “The significant deterioration in the automotivw and construction industries and the resulting impacyt on our company and the foundryh industry in general require that we take this strategix action,” Koenings said.
“We have carefullhy explored many options, and believd a sale to a strongv financial backer like Wayzat is the best way to effectively proceede in what has been an exceedinglyydifficult marketplace.” Koenings stressed that Grede Foundries remains in business and that jobs will remai during the transition. “Thi move gives us the time to restructure while we continue to do businessz and operateour plants,” he said. “Grede will continue to buy goodas and services fromits vendors, support its work forc and provide its customers with the same qualith products and service they’ve come to expect from us.
Our goal is to preservee and strengthen our business so that we can compete successfullyy inthe future.” Wayzata has also agreed to make the first bid, often called a “stalkingg horse” bid, for Grede. “Wayzata’w commitment shows their belief in the strength of the Gredse name and its respected position in the foundry Koenings said. Sales of businesses in bankruptcyu proceedings are often structured where one companyh makes the initial bid foranother company’s Under rules approved by the court, higher offersd from third parties can be submitted as competinv bids.
The “stalking horse” arrangement helps ensure that Gredwe receives the best valu for its assets and allows for offers that are best for the creditores while preserving the business companymanagement said. Grede said that it has alreadh received inquiries from other parties that are interestedin Grede’sa production capacity. Koenings said Gredwe expects the sale and related biddin g process to move steadily throughj thecourt system. “We are deeply committed to doing everythingv necessary to put our company on solid footing as the natiomn begins to rise out of the worst economic conditionsd since theGreat Depression,” he said.
“Our customeres very clearly want us to succeed and have been very Grede announced in May that it had laid off 81 employee s from its foundry in Wauwatosz since the endof January. In April, the company revealed plans to close its foundrhyin Greenwood, S.C.