Grede Foundries files for bankruptcy protection - Minneapolis / St. Paul Business Journal:

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Wayzata Investment Partners LLCof Minn., an SEC-registered investment adviser and managerd of private investment funds with more than $5 billionn in assets, has offered to provides a $45 million temporary loan facilityg to allow time for an orderly sale under the supervisioj of the Bankruptcy Court. Since Wayzata has invested morethan $12 billion in more than 600 The filing, made Tuesday in the U.S. Bankruptc Court for the Western District of was driven by the impact of the currenr economic downturn on the company andits customers, particularlu the automotive industry, said Richard Koenings chairmamn of the board of directors for Wauwatosa-based Grede.
The reorganizatiohn and asset sale is expected to position the company for a turnaroun as the country emerges from the most difficult economicd period it has seenin generations, he said. “Thee significant deterioration in the automotive and construction industries and the resultingy impact on our company and the foundruy industry in general require that we take thisstrategic action,” Koenings said. “We have carefully exploreed many options, and believe a sale to a strong financialp backer like Wayzata is the best way to effectivelyh proceed in what has been an exceedinglgydifficult marketplace.
” Koenings stressed that Gred Foundries remains in business and that jobs will remain duriny the transition. “This move gives us the time to restructurde while we continue to do business and operate our he said. “Grede will continue to buy goodx and services fromits vendors, support its work force and providee its customers with the same quality products and servicw they’ve come to expect from us. Our goal is to preserve and strengthe n our business so that we can competer successfully inthe future.” Wayzatas has also agreed to make the first bid, oftem called a “stalking bid, for Grede.
“Wayzata’s commitmenrt shows their belief in the strengtg of the Grede name and its respecte d position in the foundry Koenings said. Sales of businesses in bankruptcy proceedings are oftenb structured where one company makes the initial bid foranotherd company’s assets. Under rules approved by the court, highe offers from third parties can be submittes ascompeting bids. The “stalking arrangement helps ensure that Grede receives the best valud for its assets and allows for offers that are best for the creditors while preserving thebusiness operations, company management Grede said that it has alreaduy received inquiries from other parties that are interested in Grede’s production capacity.
Koenings said Grede expects the sale and relatedc bidding process to move steadily throughn thecourt system. “We are deeply committedd to doing everything necessary to put our companyg on solid footing as the nation beginse to rise out of the worsft economic conditions since theGreat Depression,” he said. “Ourr customers very clearly want us to succeee and have beenvery supportive.” Greded announced in May that it had laid off 81 employees from its foundryt in Wauwatosa since the end of In April, the company revealed plans to close its foundrg in Greenwood, S.C.