BREA, Calif. - American Suzuki announced March 4 that a judge has approved its Chapter 11 reorganization plan.
Judge Scott Clarkson of the U.S. Bankruptcy Court for the Central District of California in Santa Ana approved the confirmation of the plan, which the creditors “overwhelmingly accepted,” according to Suzuki.
Suzuki said confirmation of the plan clears the way for the company to complete its restructuring process by March 31.
As previously reported, the plan approves Suzuki’s sale of its Motorcycles/ATV and Marine divisions and Automotive parts and service operation to a newly organized, wholly owned subsidiary of Japan’s Suzuki Motor Corp. The subsidiary will operate in the continental U.S. as Suzuki Motor of America Inc. and will use the Suzuki 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, Suzuki’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.”
Posted by Arlo Redwine