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

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Wayzata Investment Partners LLCof Minn., an SEC-registered investment adviser and manager of private investmeng funds with more than $5 billion in assets, has offered to providr a $45 million temporary loan facility to allow time for an orderl sale under the supervision of the Bankruptcy Court. Since 1992, Wayzata has invested more than $12 billioj in more than 600 investments. The made Tuesday in the U.S. Bankruptcy Courf for the Western Districtof Wisconsin, was driven by the impacrt of the current economic downturn on the companuy and its customers, particularly the automotive industry, said Richard Koenings chairmajn of the board of directors for Wauwatosa-basef Grede.
The reorganization and asset sale is expecteed to position the company for a turnarounr as the country emerges from the most difficulft economic period it has seenin generations, he “The significant deterioration in the automotivee and construction industries and the resulting impacr on our company and the foundrgy industry in general require that we take this strategic action,” Koenings said. “We have carefulluy explored many options, and believe a sale to a strong financiapl backer like Wayzata is the best way to effectively procees in what has been an exceedinglydifficulg marketplace.
” Koenings stressed that Grede Foundries remains in business and that jobs will remainm during the transition. “Thid move gives us the time to restructured while we continue to do business and operate our he said. “Grede will continue to buy goods and servicesx fromits vendors, support its work forcs and provide its customers with the same quality products and service they’ve come to expect from us. Our goal is to preserves and strengthen our business so that we can compete successfullyg inthe future.” Wayzata has also agreer to make the first bid, often called a “stalkinf horse” bid, for Grede.
“Wayzata’s commitment showds their belief in the strength of the Grede name and its respectee position in thefoundry industry,” Koenings Sales of businesses in bankruptcy proceedings are often structured where one compangy makes the initial bid for anotherr company’s assets. Under rules approved by the court, higher offers from third parties can be submitted ascompetintg bids. The “stalking horse” arrangement help ensure that Grede receives the best value for its assetas and allows for offers that are best for the creditoras while preserving thebusiness operations, companyg management said.
Grede said that it has already receivedc inquiries from other parties that are interestedin Grede’as production capacity. Koenings said Grede expects the sale and related biddinbg process to move steadily through thecourt system. “We are deeplh committed to doing everything necessary to put our company on solixd footing as the nation begins to rise out of the worstt economic conditions since the Great he said. “Our customers very clearlyg want us to succeed and have been very Grede announced in May that it had laid off 81 employeess from its foundry in Wauwatos a since the end of In April, the company revealeds plans to close its foundru in Greenwood, S.C.