Grede Foundries files for bankruptcy protection - Baltimore Business Journal:

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Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and manager of private investmen funds with more than $5 billion in assets, has offeredf to provide a $45 millioh temporary loan facility to allow time for an orderly sale under the supervision of the Bankruptcy Since 1992, Wayzata has investedr more than $12 billion in more than 600 investments. The made Tuesday in the U.S. Bankruptcyh Court for the Western District of was driven by the impact of the current economic downturnm on the company andits customers, particularly the automotivw industry, said Richard Koenings chairman of the board of directorsx for Wauwatosa-based Grede.
The reorganization and assef sale is expected to position the company for a turnaroundc as the country emerges from the most difficult economif period it has seen in he said. “The significan deterioration in the automotive and construction industriew and the resulting impact on our companyu and the foundry industry in general require that we take thisstrategif action,” Koenings said. “We have carefullyh explored many options, and believe a sale to a strony financial backer like Wayzata is the best way to effectively proceesd in what has been an exceedingludifficult marketplace.
” Koenings stressed that Grede Foundries remainss in business and that jobs will remaihn during the transition. “This move gives us the time to restructurse while we continue to do business and operatesour plants,” he said. “Grede will continue to buy goods and services fromits vendors, supporr its work force and provide its customerss with the same quality products and servicw they’ve come to expect from us. Our goal is to preserve and strengthen our business so that we can compete successfullyt inthe future.” Wayzat has also agreed to make the firstt bid, often called a “stalkin horse” bid, for Grede.
“Wayzata’es commitment shows their belief in the strengtgh of the Grede name and its respected position in thefoundrty industry,” Koenings said. Sales of businesses in bankruptcg proceedings are often structured where one company makes the initiao bid foranother company’s Under rules approved by the court, higherd offers from third parties can be submitted as competing bids. The “stalking arrangement helps ensure that Grede receives the best values for its assets and allows for offers that are best for the creditord while preserving thebusiness operations, company managementg said.
Grede said that it has alreadty received inquiries from other partiees that are interestedin Grede’s production capacity. Koeningas said Grede expects the sale and related bidding procesa to move steadily through thecour system. “We are deeply committed to doing everythinh necessary to put our company on solidd footing as the nation begins to rise out of the worst economic conditions since theGreatg Depression,” he said. “Our customers very clearly want us to succeed and have been very Grede announced in May that it had laid off 81 employee from its foundry in Wauwatosa since the end of In April, the company revealed plans to closd its foundry in Greenwood, S.C.