Grede Foundries files for bankruptcy protection - Houston Business Journal:

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Wayzata Investment Partners LLCof Minn., an SEC-registered investment adviser and managefr of private investment funda with more than $5 billion in has offered to provide a $45 million temporary loan facilityt to allow time for an orderlyu sale under the supervision of the Bankruptcy Since 1992, Wayzata has invested more than $12 billio in more than 600 investments. The made Tuesday in the U.S.
Bankruptcty Court for the Westerjn Districtof Wisconsin, was driven by the impact of the curren t economic downturn on the company and its customers, particularly the automotive said Richard Koenings chairman of the boarx of directors for Wauwatosa-based The reorganization and asset sale is expected to positiomn the company for a turnaround as the countrhy emerges from the most difficult economic period it has seen in he said. “The significant deterioration in the automotived and construction industries and the resulting impacrt on our company and the foundrgy industry in general require that we take thisstrategic action,” Koenings said.
“We have carefully exploredr many options, and believe a sale to a strong financiaol backer like Wayzata is the best way to effectively proceed in what has been an exceedinglydifficulr marketplace.” Koenings stressed that Grede Foundriesx remains in business and that jobs will remaijn during the transition. “Thisd move gives us the time to restructure while we continure to do business and operate our he said. “Grede will continur to buy goods and serviceds fromits vendors, support its work forcd and provide its customers with the same qualityy products and service they’ve come to expect from us.
Our goal is to preservew and strengthen our business so that we can competde successfully inthe future.” Wayzata has also agreed to make the firstt bid, often called a “stalkinvg horse” bid, for Grede. “Wayzata’s commitmenf shows their belief in the strengtn of the Grede name and its respecter position in thefoundry industry,” Koeningw said. Sales of businesses in bankruptcg proceedings are often structured wherw one company makes the initial bid foranother company’ds assets.
Under rules approved by the court, higher offers from thirs parties can be submitted as competing The “stalking horse” arrangement helps ensurwe that Grede receives the best value for its assets and allows for offerw that are best for the creditors whilse preserving the business operations, company management said. Grede said that it has alreadhy received inquiries from other parties that are interestedin Grede’s production capacity. Koeningds said Grede expects the sale and relates bidding process to move steadily through thecourtt system.
“We are deeply committe to doing everything necessary to put our company on solifd footing as the nation begins to rise out of the worst economic conditions since theGreat Depression,” he said. “Oufr customers very clearly want us to succeee and have beenvery supportive.” Grede announced in May that it had laid off 81 employeeds from its foundry in Wauwatosa since the end of In April, the company revealed plans to close its foundr in Greenwood, S.C.