By William Maley
Staff Writer - CheersandGears.com
March 6, 2013
The end is here for Suzuki automobiles in the U.S.
On Thursday, a judge from U.S. Bankruptcy Court for the Central District of California in Santa Ana approved Suzuki's Chapter 11 reorganization plan. The plan calls for American Suzuki's motorcycle, ATV and marine engine businesses to exit bankruptcy and become part of a new, wholly-owned subsidiary of Suzuki Motor Corp, Suzuki Motor of America. Suzuki's automotive branch will go away after dealer sell off the remaining inventory.
"Today's confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process," said Freddie Reiss, American Suzuki's chief restructuring officer in a statement.
Source: Automotive News (Subscription Required), Suzuki
Press Release is on Page 2
Court Approves American Suzuki Motor Corporation's Chapter 11 Plan
BREA, Calif.--(BUSINESS WIRE)--American Suzuki Motor Corporation (the "Company") today announced that the Honorable Scott C. Clarkson of the U.S. Bankruptcy Court for the Central District of California in Santa Ana approved the confirmation of the Company's Chapter 11 Plan, which creditors overwhelmingly accepted. Confirmation of the Plan clears the way for the Company to complete its restructuring process, which is expected to occur on March 31, 2013.
"Today's confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process"
As previously announced, the Plan approved the Company's sale of its Motorcycles/ATV and Marine divisions and Automotive parts and service operation to a newly organized, wholly-owned subsidiary of Suzuki Motor Corporation. The subsidiary will operate in the continental U.S. as Suzuki Motor of America, Inc. and will use the Suzuki products brand name
"Today's confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process," said M. Freddie Reiss, the Company's Chief Restructuring Officer. "During the next few weeks, we will take final steps to implement the Plan, which will allow the Company to sell its Motorcycles/ATV, Marine, Automotive parts and service divisions. This will promote the long-term growth of the Motorcycles/ATV and Marine divisions, as well as providing automotive parts and service through the dealer network."
A copy of the Plan is available at www.omnimgt.com. Additional information regarding Company's business realignment can be found at the following website, www.suzuki.com, or via an information hotline at 1-877-465-4819.