Grede Foundries files for bankruptcy protection - Kansas City Business Journal:

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Wayzata Investment Partners LLCof Minn., an SEC-registered investment advisedr and manager of private investment funds with more than $5 billionb in assets, has offerex to provide a $45 million temporary loan facility to allos time for an orderly sale under the supervision of the Bankruptcy Court. Since 1992, Wayzata has investecd more than $12 billioj in more than 600 investments. The made Tuesday in the U.S. Bankruptcy Court for the Westernm Districtof Wisconsin, was driven by the impacgt of the current economic downturn on the company and its particularly the automotive said Richard Koenings chairman of the boarr of directors for Wauwatosa-based Grede.
The reorganization and asse sale is expected to position the company for a turnarounxd as the country emerges from the most difficult economic period it has seenin generations, he said. “Thes significant deterioration in the automotive and constructioj industries and the resulting impact on our companu and the foundry industry in general requirer that we take thisstrategic action,” Koenings said. “We have carefully explored many options, and believe a sale to a strongh financial backer like Wayzatas is the best way to effectively proceed in what has been an exceedinglydifficult marketplace.
” Koeningds stressed that Grede Foundries remains in businessw and that jobs will remainj during the transition. “This move givess us the time to restructure while we continue to do business and operatrour plants,” he said. “Grede will continue to buy goodzs and services from its support its work force and providw its customers with the same qualith products andservice they’ve come to expect from us. Our goal is to preserv e and strengthen our business so that we can compete successfullhy inthe future.
” Wayzata has also agreee to make the first bid, often calles a “stalking horse” bid, for “Wayzata’s commitment shows their beliedf in the strength of the Grede name and its respected positiobn in the foundry industry,” Koeningds said. Sales of businessez in bankruptcy proceedings are ofte n structured where one companh makes the initial bid foranothef company’s assets.
Under rules approved by the court, higherd offers from third parties can be submitted as competing The “stalking horse” arrangementr helps ensure that Grede receives the best valuew for its assets and allows for offerds that are best for the creditorsw while preserving the business operations, company managementg said. Grede said that it has already received inquirieas from other parties that are interesteein Grede’s production Koenings said Grede expects the sale and related biddingf process to move steadily throug h the court system.
“We are deeplhy committed to doing everything necessary to put our companhy on solid footing as the natiob begins to rise out of the worst economic conditions since the Great he said. “Our customers very clearlyy want us to succeed and have been very Grede announced in May that it had laid off 81 employees from its foundrh in Wauwatosa since the endof January. In April, the companty revealed plans to close its foundryin S.C.