Suzuki Gains Court Approval for Latest Bankruptcy Plan Component
In what the company called a move to solidify plans for its new automotive parts and service operation, American Suzuki Motor Corp. announced late Tuesday that the disclosure statement for its amended Chapter 11 bankruptcy plan has been approved by Judge Scott Clarkson of the U.S. Bankruptcy Court of the Central District of California.
Officials explained the court’s approval of the disclosure statement allows ASMC to begin soliciting votes to accept the plan. A confirmation hearing is currently scheduled for Feb. 28.
“The approval of our disclosure statement represents an important step in our realignment and restructuring process,” said Freddie Reiss, ASMC’s chief restructuring officer. “We look forward to implementing our plan upon emergence and advancing our business strategy in the continental U.S. of focusing on the long-term growth of our motorcycles/ATV and marine divisions, while continuing to provide automotive parts and service through our dealer network.”
The company’s amended plan further specifies how its motorcycles/ATV and marine divisions, along with its continued automotive parts and service operation, will be sold to a newly organized, wholly-owned subsidiary of Suzuki Motor Corp. Officials said that move will enable those operations to continue uninterrupted.
The new entity will use the ASMC brand name and operate in the continental U.S.
Votes on the plan must be received by the company’s voting agent, Rust Omni, by Feb. 21. Solicitation materials are expected to be mailed to all creditors entitled to vote on the plan no later than Jan. 24.
“This press release is for informational purposes only and is not a solicitation to accept or reject the plan,” Suzuki said. “The disclosure statement, along with ballots and other solicitation materials, will be distributed directly to those creditors of the company who are entitled to vote to accept or reject the plan pursuant to the disclosure statement.
A copy of the plan and disclosure statement is available at www.omnimgt.com.
Additional information regarding ASMC’s business realignment can be found at the company’s website www.suzuki.com or via an information hotline at (877) 465-4819.