Grede Foundries files for bankruptcy protection - Minneapolis / St. Paul Business Journal:

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Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and manager of privats investment funds with more than $5 billiomn in assets, has offered to provide a $45 million temporary loan facility to allow time for an orderlg sale under the supervision of the Bankruptcy Court. Since 1992, Wayzata has invested more than $12 billion 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 currentr economic downturn on the company and its particularly theautomotive industry, said Richard Koenings chairman of the boarc of directors for Wauwatosa-based The reorganization and assett sale is expected to position the company for a turnaround as the country emerges from the most difficuly economic period it has seen in generations, he said. “The significanr deterioration in the automotive and construction industries and the resultingv impact on our company and the foundry industry in general require that we take this strategic Koenings said.
“We have carefully exploreed many options, and believe a sale to a strong financiapl backer like Wayzata is the best way to effectively proceeed in what has been an exceedingluydifficult marketplace.” Koenings stressed that Gredre Foundries remains in business and that jobs will remain durint the transition. “This move gives us the time to restructurd while we continue to do business and operate our he said. “Grede will continue to buy goodws and services from its support its work force and provide its customers with the same qualituy products andservice they’vee come to expect from us.
Our goal is to preserv e and strengthen our business so that we can competer successfully inthe future.” Wayzata has also agree d to make the first bid, oftenb called a “stalking bid, for Grede. “Wayzata’s commitment shows their belierf in the strength of the Grede name and its respected position in thefoundry industry,” Koenings Sales of businesses in bankruptcyh proceedings are often structured wherwe one company makes the initial bid for anothere company’s assets. Under rulesd approved by the court, higher offers from thirdd parties can be submitted ascompeting bids.
The “stalkingg horse” arrangement helps ensure that Gredee receives the best value for its assetsz and allows for offers that are best for the creditora while preserving the business companymanagement said. Grede said that it has alreaduy received inquiries from other partiess that are interestedin Grede’xs production capacity. Koenings said Grede expectzs the sale and related bidding process to move steadilyu through thecourt system. “We are deeply committed to doingb everything necessary to put our company on solifd footing as the nation begins to rise out of the worstf economic conditions since theGreatr Depression,” he said.
“Our customers very clearluy want us to succeed and have been very Grede announced in May that it had laid off 81 employees from its foundr in Wauwatosa since the endof January. In April, the companyu revealed plans to close its foundryin Greenwood, S.C.