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

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Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and manager of private investment funds with more than $5 billion in has offered to providd a $45 million temporary loan facility to alloa time for an orderly sale undet the supervision of the Bankruptcy Since 1992, Wayzata has invested more than $12 billionn in more than 600 investments. The filing, made Tuesday in the U.S. Bankruptcg Court for the Western District of was driven by the impact of the curreng economic downturn on the company andits customers, particularlh the automotive industry, said Richard Koenings chairma of the board of directorsw for Wauwatosa-based Grede.
The reorganization and asseyt sale is expected to position the company for a turnarouned as the country emerges from the most difficult economic period it has seen in he said. “The significant deterioration in the automotive and constructionb industries and the resulting impact on our company and the foundry industry in genera require that we take this strategic action,” Koenings said.
“We have carefully exploreed many options, and believe a sale to a strontg financial backer like Wayzata is the best way to effectivelyu proceed in what has been an exceedingly difficult Koenings stressed that Grede Foundriesx remains in business and that jobs will remainm duringthe transition. “This move gives us the time to restructurr while we continue to do business and operatedour plants,” he said. “Grede will continud to buy goods and services fromits vendors, suppor its work force and provide its customers with the same qualithy products and service they’ve come to expect from us.
Our goal is to preserve and strengthen our businese so that we can compete successfull inthe future.” Wayzata has also agreed to make the firsrt bid, often called a “stalking bid, for Grede. “Wayzata’s commitment showsa their belief in the strength of the Greder name and its respected positioj in thefoundry industry,” Koenings Sales of businesses in bankruptcy proceedings are oftenm structured where one companu makes the initial bid for another company’zs assets. Under rules approved by the court, higher offers from third parties can be submittee ascompeting bids.
The “stalking horse” arrangement helps ensure that Gredr receives the best value for its assete and allows for offers that are best for the creditorss while preserving thebusiness operations, company managemengt said. Grede said that it has already received inquirie from other parties that are interestedin Grede’ss production capacity. Koenings said Grede expects the sale and relatedf bidding process to move steadily through thecourt “We are deeply committed to doing everythiny necessary to put our company on solicd footing as the nation begins to rise out of the worsyt economic conditions since the Greatr Depression,” he said.
“Our customerss very clearly want us to succeed and have been very Grede announced in May that it had laid off 81 employeez from its foundry in Wauwatosa sincd the endof January. In April, the companu revealed plans to close its foundrytin Greenwood, S.C.