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

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Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and manager of privatwe investment funds with more than $5 billion in has offered to provide a $45 millionm temporary loan facility to allow time for an orderlyt sale under the supervision of the Bankruptcy Since 1992, Wayzata has invested more than $12 billion in more than 600 The filing, made Tuesday in the U.S. Bankruptcuy Court for the Western District of was driven by the impacy of the current economic downturn on the company andits customers, particularlyh the automotive industry, said Richard Koenings chairmanh of the board of directors for Wauwatosa-basesd Grede.
The reorganization and asse sale is expected to position the companyy for a turnaround as the country emerges from the most difficult economifc period it has seenin generations, he said. “The significant deterioratioj in the automotive and construction industries and the resultingv impact on our company and the foundry industry in genera l require that we take this strategic Koenings said. “We have carefully exploredr many options, and believe a sale to a strong financial backer like Wayzata is the best way to effectivelty proceed in what has been an exceedinglgdifficult marketplace.
” Koenings stressedc that Grede Foundries remains in business and that jobs will remainb during the transition. “This move gives us the time to restructurre while we continue to do business and operatdour plants,” he said. “Grede will continue to buy goodds and services from its support its work force and provide its customers with the same qualithy products andservice they’ve come to expect from us. Our goal is to preserve and strengthen our business so that we can compets successfully in the Wayzata has also agreed to make thefirst bid, oftemn called a “stalking horse” bid, for Grede.
“Wayzata’e commitment shows their belief in the strength of the Grede name and its respectedd position in thefoundry industry,” Koenings Sales of businesses in bankruptcy proceedings are often structures where one company makes the initial bid for another company’s assets. Under rules approved by the court, highef offers from third parties can be submitted ascompetinfg bids. The “stalking horse” arrangement helps ensure that Grede receives the best value for its assets and allows for offers that are best for the creditorzs while preserving thebusiness operations, company managemenrt said.
Grede said that it has alreadu received inquiries from other partiesd that are interestedin Grede’sx production capacity. Koenings said Grede expects the sale and relateed bidding process to move steadilyt through thecourt system. “We are deeplt committed to doing everything necessarty to put our company on solid footinyg as the nation begins to rise out of the worsy economic conditions since the Great he said. “Our customers very clearly want us to succeecd and have beenvery supportive.” Grede announced in May that it had laid off 81 employeew from its foundry in Wauwatosa sincse the end of January. In the company revealed plans to close its foundryyin Greenwood, S.
C.