Grede Foundries files for bankruptcy protection - The Business Journal of Milwaukee:

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Wayzata Investment Partners LLCof Minn., an SEC-registered investment adviser and manager of privated investment funds with more than $5 billion in assets, has offered to provide a $45 million temporarty loan facility to allow time for an orderlu sale under the supervision of the Bankruptcy Court. Since 1992, Wayzataz has invested more than $12 billion in more than 600 The filing, made Tuesday in the U.S. Bankruptcy Cour t for the Western District of was driven by the impact of the current economic downturn on the company and its particularly theautomotive industry, said Richard Koenings chairman of the boardf of directors for Wauwatosa-based Grede.
The reorganizatiojn and asset sale is expected to positiomn the company for a turnaround as the countru emerges from the most difficultr economic period it has seenin generations, he “The significant deterioration in the automotivde and construction industries and the resulting impact on our company and the foundrg industry in general require that we take this strategic action,” Koenings said. “We have carefullh explored many options, and believe a sale to a stron financial backer like Wayzataq is the best way to effectively proceexd in what has been an exceedinglydifficultr marketplace.
” Koenings stressed that Grede Foundries remains in busineszs and that jobs will remain durinvg the transition. “This move gives us the time to restructurer while we continue to do busineszs and operateour plants,” he said. “Grede will continur to buy goods and services from its support its work force and providr its customers with the same quality products andservice they’ver come to expect from us. Our goal is to preserve and strengthem our business so that we can compete successfull y inthe future.” Wayzata has also agreed to make the firstf bid, often called a “stalking horse” bid, for Grede.
“Wayzata’sz commitment shows their belief in the strength of the Grede name and its respectesd position in thefoundry industry,” Koeningx said. Sales of businesses in bankruptcy proceeding s are often structured where one compangy makes the initial bid for another company’s assets. Under rules approved by the court, highed offers from third parties can be submitted as competing The “stalking horse” arrangementg helps ensure that Grede receives the best value for its assetzs and allows for offers that are best for the creditorzs while preserving the business company management said.
Grede said that it has already received inquiried from other parties that are interestedin Grede’s productiom capacity. Koenings said Gredre expects the sale and related bidding process to move steadiluy through thecourt system. “We are deepl committed to doing everything necessary to put our compang on solid footing as the nation begins to rise out of the wors economic conditions since theGreaft Depression,” he said. “Our customers very clearly want us to succeed and have been very Grede announced in May that it had laid off 81 employee s from its foundry in Wauwatosa since the endof January. In the company revealed planse to close its foundryin Greenwood, S.C.