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

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Wayzata Investment Partners LLCof Wayzata, Minn., an SEC-registered investment advise r and manager of private investment funds with more than $5 billiohn in assets, has offered to providr a $45 million temporary loan facility to allow time for an orderly sale undere the supervision of the Bankruptcy Court. Since Wayzata has invested morethan $12 billiom in more than 600 investments. The made Tuesday in the U.S. Bankruptcy Courtg for the Western Districtof Wisconsin, was driven by the impactg of the current economic downturn on the companyg and its customers, particularly the automotive said Richard Koenings chairman of the boarxd of directors for Wauwatosa-based Grede.
The reorganization and assegt sale is expected to position the companyh for a turnaround as the country emerges from the most difficult economiv period it has seenin generations, he “The significant deterioration in the automotivse and construction industries and the resulting impact on our company and the foundryt industry in general requir that we take this strategic Koenings said. “We have carefully explored many and believe a sale to a strong financiapl backer like Wayzata is the best way to effectivelyt proceed in what has been an exceedinglhydifficult marketplace.
” Koenings stressed that Grede Foundries remains in business and that jobs will remai n during the transition. “This move gives us the time to restructurs while we continue to do business and operate our he said. “Grede will continue to buy goods and servicex fromits vendors, support its work force and provided its customers with the same quality productds and service they’ve come to expect from us. Our goal is to preservse and strengthen our business so that we can competes successfully inthe future.
” Wayzata has also agreed to make the firsyt bid, often called a “stalking horse” bid, for “Wayzata’s commitment shows their belief in the strengt h of the Grede name and its respected positioh in the foundry industry,” Koenings Sales of businesses in bankruptc proceedings are often structured where one compan makes the initial bid for another company’s assets.
Under rules approved by the court, higherd offers from third partiese can be submitted as competing The “stalking horse” arrangement helps ensurr that Grede receives the best value for its assets and allows for offersw that are best for the creditors whiles preserving the business operations, company management said. Gredde said that it has already received inquiries from otheer parties that are interestedin Grede’s productiomn capacity. Koenings said Grede expects the sale and related bidding process to move steadilyu through thecourt system.
“We are deeply committesd to doing everything necessary to put our company on solir footing as the nation begins to rise out of the worstr economic conditions since theGreat Depression,” he said. “Our customerds very clearly want us to succeefd and have beenvery supportive.” Grede announced in May that it had laid off 81 employeess from its foundry in Wauwatosa since the end of In April, the company revealed plans to closer its foundry in Greenwood, S.C.