BREA, Calif., Mar. 1, 2013 – 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.
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.”
AMERICAN SUZUKI MOTOR CORPORATION GRANTED APPROVAL OF DISCLOSURE STATEMENT
ASMC cleared to initiate solicitation process; takes next step towards confirmation of Chapter 11 Plan
BREA, Calif., Jan. 15, 2013 – American Suzuki Motor Corporation (“ASMC” or “the Company”) announced today that the Disclosure Statement (the “Disclosure Statement”) for its amended Chapter 11 Plan (the “Plan”) has been approved by Judge Scott Clarkson of the U.S. Bankruptcy Court of the Central District of California. 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 February 28, 2013.
“The approval of our Disclosure Statement represents an important step in our realignment and restructuring process,” said M. 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 Corporation (“SMC”), enabling 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 February 21, 2013. Solicitation materials are expected to be mailed to all creditors entitled to vote on the Plan no later than January 24, 2013. A hearing to consider confirmation of the Plan is currently scheduled for February 28, 2013, at 9:00 a.m. Pacific Standard Time.
This press release is for informational purposes only and is not a solicitation to accept or reject the Plan. 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.
AMERICAN SUZUKI MOTOR CORPORATION (“ASMC”) RECEIVES BANKRUPTCY COURT APPROVAL OF UP TO $100 MILLION
AMERICAN SUZUKI MOTOR CORPORATION (“ASMC”) RECEIVES BANKRUPTCY COURT APPROVAL OF UP TO $100 MILLION IN DEBTOR-IN-POSSESSION (“DIP”) FINANCING
- ASMC continues realignment to focus on Motorcycles/ATV and Marine divisions
- Company intends to bring additional automobile inventory from Japan to dealers in the continental U.S. to meet current consumer demand
BREA, Calif., Dec. 6, 2012 – American Suzuki Motor Corporation (“ASMC” or “the Company”) today announced that it has received Court approval for Debtor-In-Possession (“DIP”) financing. As a result, the Company will be able to borrow up to $50 million for operations and up to $50 million for purchases of inventory from Suzuki Motor Corporation (“SMC”). These funds will help ensure that ASMC has the cash necessary to operate its business during the pendency of the chapter 11 case. The motion was previously granted Court approval, on an interim basis, on November 7, 2012.
In response to continued consumer demand, dealer interest has remained high in continuing to order and receive shipments of Suzuki automobiles as long as they remain available, ASMC intends to use a portion of the DIP funds to purchase and ship 2,500 additional cars from Japan to the continental U.S., which have been manufactured since ASMC announced its restructuring. Earlier this week, the Company released its November 2012 sales numbers, reporting that it sold more than 2200 units last month, an increase of 22% compared to the same period last year.
As previously announced, ASMC is continuing to market and sell its remaining U.S. automobile inventory through its national network of automotive dealers. Further, ASMC continues to provide marketing and incentives to help promote the continued sale of the automobiles remaining in dealer inventory and the pipeline. This includes, zero percent financing for up to 72 months for qualified customers through an agreement with Ally Financial Inc. All automobile warranties will continue to be fully honored in accordance with their terms, and parts and service will continue to be provided to consumers through ASMC’s parts and service dealer network. As of November 30 2012, automotive dealers representing all of the top 50 and more than 98% of the total volume of
ASMC’s continental U.S. automobile sales have agreed to transition to parts and services operations.
ASMC announced on November 5, 2012, that it plans to realign its business to focus on the long-term growth of its Motorcycles/ATV and Marine divisions and to wind down and discontinue new automobile sales in the continental U.S., following a thorough review of its current position and future opportunities in the U.S. automotive market. ASMC determined that the best path to achieve this realignment in an efficient and orderly manner was to restructure its operations under chapter 11. The case was filed in the United States Bankruptcy Court, Central District of California in Santa Ana.
AMERICAN SUZUKI MOTOR CORPORATION (“ASMC”) RECEIVES BANKRUPTCY COURT APPROVAL OF AGREEMENT WITH ALLY FINANCIAL INC.
Certain Affiliates (“Ally”) to Enable Continuation of Automotive Financing
Programs
Ally and certain affiliates to continue zero percent consumer financing and dealer floorplan financing for automotive products
Financing programs for motorcycles, ATV and marine products to continue with GE Capital’s Retail Finance and Commercial Distribution Finance businesses and Sheffield Financial
BREA, Calif., Nov. 16, 2012 – American Suzuki Motor Corporation (“ASMC” or “the Company”), today announced that it has received Bankruptcy Court approval of its agreement with Ally Financial Inc. and certain of its affiliates (“Ally”), including American Suzuki Financial Services Company, to assume certain agreements with Ally that support Ally’s provision of automotive dealer floorplan financing and retail financing programs, including zero percent for qualified buyers of Suzuki automobiles. The agreement will help ensure that ASMC’s automotive dealers and consumers have continued access to wholesale and retail financing for Suzuki automobiles.
As previously announced, all automobile warranties will continue to be fully honored, in accordance with their terms, and parts and service will continue to be provided to consumers through ASMC’s continued service and parts dealer network.
Also, on November 7, 2012, ASMC obtained authority to continue its financing relationships with GE Capital’s Retail Finance and Commercial Distribution Finance businesses, which provide motorcycle and ATV consumer financing programs, as well as motorcycle, ATV and marine dealer inventory financing, respectively. By Court approval of these motions, dealers and consumers of Suzuki products will continue to have access to wholesale and retail financing in the same manner as before the Company’s November 5, 2012, chapter 11 filing. The Court also approved the continuation of existing agreements with Sheffield Financial for consumer financing for motorcycle and ATV products.
ASMC has begun working within its current U.S. Automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations. ASMC intends to market and sell its remaining U.S. automobile inventory through its automotive dealer network, many of whom have expressed interest in continuing to order and receive shipments of Suzuki automobiles as long as they remain available.
Through and after the restructuring, all warranties will be fully honored and automobile parts and services will be provided to consumers through the dealer network.
ASMC announced on November 5, 2012, that it plans to realign its business to focus on the long-term growth of its Motorcycles/ATV and Marine divisions and to wind down and discontinue new automobile sales in the continental U.S., following a thorough review of its current position and future opportunities in the U.S. automotive market. ASMC determined that the best path to achieve this realignment in an efficient and orderly manner was to restructure its operations under chapter 11. The case was filed in the United States Bankruptcy Court, Central District of California in Santa Ana.