Grede Foundries Inc. has declared bankruptcy and filed Chapter 11 claim, according to local press reports, seeking creditor protection during reorganization. The St. Cloud, (MN) Times reports that the Milwaukee-based foundry group is offering itself for sale, and that a Minnesota investor group is providing working capital for the organization.
The decision to declare bankruptcy follows many months of downsizing by the foundry group. Grede chairman Richard Koenings cited the impact of the recession on the company and its customers, particularly those in the automotive industry.
Until a permanent buyer is found, Grede will be financed by a $45-million loan from Wayzata Investment Partners L.L.C. of Wayzata, Minn. The investors reportedly have agreed to be the first bidder on the sale of the plants.
Wayzata Investment Partners is an investment adviser and manager of private investment funds.
None of Grede’s seven gray and ductile iron foundries is expected to close. In May of this year, Grede decided to close its Greenwood, SC, foundry, and indicated it might sell its Vassar, MI, plant.
The news reports say the bankruptcy filing lists Grede’s assets at nearly $144 million and liabilities at more than $148 million.
Grede Foundries in Chapter 11
No closings expected as group prepares for sale