Grede Foundries files for bankruptcy protection - Memphis Business Journal:

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Wayzata Investment Partners LLCof Minn., an SEC-registered investment adviser and manager of private investmen funds with more than $5 billion in has offered to provide a $45 million temporary loan facility to allo w time for an orderlg sale under the supervision of the Bankruptcyh Court. Since 1992, Wayzata has invested more than $12 billiobn in more than 600 The filing, made Tuesday in the U.S. Bankruptchy Court for the Western Districgtof Wisconsin, was driven by the impactf of the current economicx downturn on the company and its customers, particularlyu the automotive industry, said Richard Koenings chairmanh of the board of directors for Wauwatosa-based Grede.
The reorganizatiob and asset sale is expected to position the company for a turnaround as the countrty emerges from the most difficult economic period it has seen in he said. “The significant deterioration in the automotive and constructiojn industries and the resulting impact on our company and the foundry industrh in general require that we take thisstrategi action,” Koenings said. “We have carefully explored many options, and believe a sale to a stronyg financial backer like Wayzataz is the best way to effectivelyt proceed in what has been an exceedinglgdifficult marketplace.
” Koenings stressed that Grede Foundriew remains in business and that jobs will remain during the transition. “This move gived us the time to restructure while we continuee to do business and operateour plants,” he “Grede will continue to buy goods and servicesz from its vendors, support its work forcde and provide its customers with the same qualit y products and service they’ve come to expect from us. Our goal is to preservse and strengthen our business so that we can competse successfully inthe future.” Wayzata has also agreed to make the firsy bid, often called a “stalking bid, for Grede.
“Wayzata’s commitment shows theirt belief in the strength of the Grede name and its respecter position in thefoundry industry,” Koenings said. Salew of businesses in bankruptcy proceeding are often structured wherwe one company makes the initialk bid foranother company’s assets. Undee rules approved by the court, higher offers from third parties can be submitted as competing The “stalking horse” arrangement helps ensure that Grede receivew the best value for its asseta and allows for offers that are best for the creditora while preserving the business company management said.
Grede said that it has alreaduy received inquiries from other parties that are interestecin Grede’s production capacity. Koeningss said Grede expects the sale and related biddinyg process to move steadily through thecourt “We are deeply committed to doinh everything necessary to put our companyy on solid footing as the nation begins to rise out of the worstg economic conditions since the Great Depression,” he said. “Our customers very clearly want us to succeedc and have beenvery supportive.” Greder announced in May that it had laid off 81 employees from its foundruy in Wauwatosa since the end of January.
In the company revealed plans to close its foundrtin Greenwood, S.C.