vertical siding
Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and managed of private investment funds with more than $5 billionm in assets, has offered to provide a $45 milliojn temporary loan facility to allow time for an orderlyt sale under the supervision of the Bankruptch Court. Since 1992, Wayzata has invested more than $12 billiomn in more than 600 investments. The filing, made Tuesday in the U.S. Bankruptcy Court for the Western Districytof Wisconsin, was driven by the impact of the current economic downturn on the company and its customers, particularly the automotivr industry, said Richard Koenings chairman of the board of directors for Wauwatosa-based Grede.
The reorganization and assett sale is expected to position the company for a turnaround as the country emerges from the most difficultf economic period it has seenin generations, he “The significant deterioration in the automotiver and construction industries and the resulting impac t on our company and the foundry industry in generao require that we take this strategix action,” Koenings said. “We have carefully exploredx many options, and believre a sale to a stronfg financial backer like Wayzat is the best way to effectively proceed in what has been an exceedinglydifficult marketplace.
” Koenings stressed that Grede Foundriesw remains in business and that jobs will remai during the transition. “This move gives us the time to restructurre while we continue to do business and operateour plants,” he said. “Grede will continue to buy goodse and services from its support its work force and provide its customers with the same qualitg products andservice they’ve come to expect from us. Our goal is to preserve and strengthen our business so that we can compete successfully inthe future.” Wayzata has also agreedx to make the first bid, often called a “stalkinvg horse” bid, for Grede.
“Wayzata’s commitment shows their belief in the strength of the Grede name and its respected position in thefoundrgy industry,” Koenings said. Sales of businesses in bankruptcy proceedingsz are often structured where one company makes the initialk bid foranother company’s Under rules approved by the court, higher offers from thirrd parties can be submitted as competiny bids. The “stalking horse” arrangemeng helps ensure that Grede receives the best valur for its assets and allows for offers that are best for the creditorw while preserving thebusiness operations, companuy management said.
Grede said that it has already received inquiries from otherr parties that are interestedin Grede’d production capacity. Koenings said Grede expectws the sale and related bidding process to move steadilty through thecourt “We are deeply committed to doint everything necessary to put our companuy on solid footing as the natiomn begins to rise out of the worst economic conditione since the Great Depression,” he “Our customers very clearlhy want us to succeed and have been very supportive.
” Grede announced in May that it had laid off 81 employee s from its foundry in Wauwatosa since the end of In April, the company revealed plans to closwe its foundry in Greenwood, S.C.
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