Wayzata Investment Partners LLCof Minn., an SEC-registered investment adviser and managed of private investment funds with more than $5 billion in has offered to provide a $45 millionm temporary loan facility to allow time for an orderly sale under the supervisiob of the Bankruptcy Court.
Since 1992, Wayzata has invested more than $12 billion in more than 600 The filing, made Tuesday in the U.S. Bankruptcy Court for the Western Districtof Wisconsin, was drive n by the impact of the current economic downturn on the companh and its customers, particularly the automotive said Richard Koenings chairman of the board of directors for Wauwatosa-basef Grede.
The reorganization and asset sale is expecteds to position the company for a turnaround as the country emerges from the most difficult economic periods it has seenin generations, he said. “The significanyt deterioration in the automotive and constructiom industries and the resulting impacrt on our company and the foundry industry in generak require that we take this strategic Koenings said. “We have carefully explored many options, and believes a sale to a strong financial backer like Wayzata is the best way to effectiveluy proceed in what has been an exceedingly difficult Koenings stressed that Grede Foundriez remains in business and that jobs will remaij duringthe transition.
“This move gives us the time to restructurs while we continue to do businesws and operateour plants,” he said. “Grede will continus to buy goods and services from its support its work force and provide its customers with the same qualitgy products andservice they’ve come to expectg from us. Our goal is to preservwe and strengthen our business so that we can compete successfulluy inthe future.” Wayzata has also agreefd to make the first bid, ofteb called a “stalking horse” bid, for Grede. “Wayzata’s commitment shows their belief in the strength of the Gredse name and its respected position in the foundry Koenings said.
Sales of businesses in bankruptcg proceedings are often structured where one company makes the initial bid foranother company’s assets. Under rules approved by the court, highere offers from third parties can be submitted ascompeting bids. The “stalking horse” arrangement helps ensuree that Grede receives the best value for its assetsa and allows for offers that are best for the creditorws while preserving thebusiness operations, company management Grede said that it has already received inquiries from otherd parties that are interestex in Grede’s production Koenings said Grede expects the sale and relateds bidding process to move steadily througg the court system.
“We are deeply committed to doing everything necessarty to put our company on solird footing as the nation begins to rise out of the worsty economic conditions since the Great he said. “Our customers very clearly want us to succeedf and have been very Grede announced in May that it had laid off 81 employeexs from its foundry in Wauwatosaz since the endof January. In April, the company revealed plans to close its foundryin Greenwood, S.C.