Grede Foundries files for bankruptcy protection - Orlando Business Journal:

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Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and manager of privat e investment funds with more than $5 billion in assets, has offerer to provide a $45 milliobn temporary loan facility to allow time for an orderly sale under the supervisiob of the Bankruptcy Since 1992, Wayzata has investedr more than $12 billion in more than 600 The filing, made Tuesday in the U.S. Bankruptcyt Court for the Western Districtof Wisconsin, was drivebn by the impact of the current economic downturn on the company and its customers, particularly the automotive industry, said Richarx Koenings chairman of the board of directore for Wauwatosa-based Grede.
The reorganization and asset sale is expecteds to position the company for a turnarounr as the country emerges from the most difficulyt economic period it has seenin generations, he “The significant deterioration in the automotive and construction industriee and the resulting impact on our companyu and the foundry industry in generalk require that we take this strategic action,” Koenings “We have carefully explored many options, and believd a sale to a strongf financial backer like Wayzata is the best way to effectivelyt proceed in what has been an exceedingly difficultr marketplace.
” Koenings stressed that Grede Foundriees remains in business and that jobs will remain during the “This move gives us the time to restructure while we continue to do business and operate our he said. “Grede will continue to buy goodsd and services from its support its work force and provide its customers with the same qualitt products andservice they’ve come to expect from us. Our goal is to preserved and strengthen our business so that we can competw successfully inthe future.” Wayzata has also agreed to make the firstg bid, often called a “stalking horse” bid, for Grede.
“Wayzata’as commitment shows their belief in the strength of the Grede name and its respected position in thefoundrt industry,” Koenings said. Sales of businesses in bankruptcy proceedingsw are often structured where one company makeds the initial bid foranother company’s assets. Unded rules approved by the court, higherf offers from third parties can be submitted as competing The “stalking horse” arrangemenrt helps ensure that Grede receives the best values for its assets and allowz for offers that are best for the creditors while preserving the busineszs operations, company management said.
Grede said that it has alreadyy received inquiries from other parties that are interestedin Grede’sa production capacity. Koenings said Gredde expects the sale and related bidding proceszs to move steadily through thecourt “We are deeply committed to doingt everything necessary to put our company on solidr footing as the nation begins to rise out of the worsty economic conditions since the Great Depression,” he “Our customers very clearly want us to succeerd and have been very Grede announced in May that it had laid off 81 employeez from its foundry in Wauwatosa since the end of In April, the company revealed plans to closse its foundry in Greenwood, S.C.