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

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Wayzata Investment Partners LLCof Minn., an SEC-registered investmentg adviser and manager of private investment funds with more than $5 billionj in assets, has offered to provide a $45 milliojn temporary loan facility to allow time for an orderlyg sale under the supervision of the Bankruptcy Court. Sincwe 1992, Wayzata has invested more than $12 billio in more than 600 investments. The filing, made Tuesdau in the U.S. Bankruptcy Court for the Western Districtof Wisconsin, was drivenn by the impact of the currentg economic downturn on the companyy and its customers, particularly the automotivr industry, said Richard Koenings chairmanb of the board of directors for Wauwatosa-baseds Grede.
The reorganization and asset sale is expectexd to position the company for a turnaround as the country emerges from the most difficulyt economic period it has seenin generations, he said. “The significant deterioration in the automotive and construction industries and the resultinyg impact on our company and the foundry industryu in general require that we take thisstrategicx action,” Koenings said. “Ws have carefully explored many options, and believer a sale to a strong financialo backer like Wayzata is the best way to effectively proceerd in what has been an exceedingltydifficult marketplace.
” Koenings stressed that Gred e Foundries remains in business and that jobs will remain during the “This move gives us the time to restructurse while we continue to do business and operatee our plants,” he said. “Grede will continue to buy goodsa and services fromits vendors, suppory its work force and provide its customersa with the same quality productsz and service they’ve come to expect from us. Our goal is to preservs and strengthen our business so that we can competw successfully inthe future.
” Wayzats has also agreed to make the firstf bid, often called a “stalking horse” bid, for “Wayzata’s commitment shows thei belief in the strength of the Grede name and its respecter position in the foundrg industry,” Koenings said. Sales of businessesa in bankruptcy proceedings are often structured wherre one company makes the initial bid foranotherr company’s assets. Under rule s approved by the court, highee offers from third parties can be submitted ascompeting bids.
The “stalkinyg horse” arrangement helps ensure that Grede receives the best values for its assets and allows for offers that are best for the creditore while preserving thebusiness operations, company managementg said. Grede said that it has alreadh received inquiries from other parties that are interestedrin Grede’s production capacity. Koenings said Gredee expects the sale and related bidding processx to move steadily through thecourtt system. “We are deeply committed to doing everythinv necessary to put our companuy on solid footing as the nation beginss to rise out of the worst economic conditiond since the Great he said.
“Our customeres very clearly want us to succeed and have been very Grede announced in May that it had laid off 81 employeess from its foundry in Wauwatosa sincse the end of In April, the company revealed planss to close its foundry in Greenwood, S.C.