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

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Wayzata Investment Partners LLCof Wayzata, Minn., an SEC-registerer investment adviser and manager of private investment funds with more than $5 billionn in assets, has offered to provide a $45 milliojn temporary loan facility to allow time for an orderly sale undere the supervision of the Bankruptcy Court. Since Wayzata has invested morethan $12 billiomn in more than 600 investments. The filing, made Tuesday in the U.S. Bankruptct Court for the Western Districtof Wisconsin, was drivenn by the impact of the currentf economic downturn on the compant and its customers, particularly the automotive said Richard Koenings chairman of the board of directorss for Wauwatosa-based Grede.
The reorganization and asset sale is expectedr to position the company for a turnaround as the countruy emerges from the most difficult economic period it has seenin generations, he “The significant deterioration in the automotives and construction industries and the resulting impacyt on our company and the foundr industry in general require that we take this strategic action,” Koenings said. “Wre have carefully explored many options, and believe a sale to a stronvg financial backer like Wayzat is the best way to effectively proceed in what has been an exceedinglyhdifficult marketplace.
” Koenings stressed that Gredee Foundries remains in business and that jobs will remain durin g the transition. “This move gives us the time to restructure while we continue to do business and operaterour plants,” he said. “Grede will continue to buy goodw and services fromits vendors, support its work forc and provide its customers with the same qualityt products and service they’ve come to expectt from us. Our goal is to preserve and strengthen our businesa so that we can compete successfully in the Wayzata has also agreee to make thefirst bid, oftenm called a “stalking bid, for Grede.
“Wayzata’s commitmenyt shows their belief in the strengtj of the Grede name and its respected position in thefoundry industry,” Koenings said. Sales of businesses in bankruptcy proceedings are oftej structured where one company makes the initial bid foranothet company’s assets. Under rules approved by the higher offers from third parties can be submitted as competing The “stalking horse” arrangement helps ensure that Grede receives the best value for its assetws and allows for offers that are best for the creditor s while preserving the business company management said.
Grede said that it has alreadt received inquiries from other partiees that are interestedin Grede’ws production capacity. Koenings said Gredre expects the sale and related bidding procesw to move steadily through thecour system. “We are deepluy committed to doing everything necessary to put our companyg on solid footing as the nation begins to rise out of the worsg economic conditions since the Great he said. “Our customers very clearly want us to succeed and have been very Grede announced in May that it had laid off 81 employeees from its foundry in Wauwatosa since the end of In April, the company revealed plans to closw its foundry in Greenwood, S.C.