Court approves American Suzuki reorganization planPosted on
A U.S. bankruptcy court approved Suzuki’s Chapter 11 reorganization plan to halt its U.S. auto sales and continue selling only ATVs, motorcycles and boat engines.
Judge 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 accepted, the company announced. Confirmation of the plan clears the way for Suzuki to complete its restructuring process.
The plan approved the company’s sale of its motorcycle/ATV and marine divisions and automotive parts and service operation to a newly organized, wholly owned subsidiary of Suzuki Motor Corp. The subsidiary will operate in the continental United States as Suzuki Motor of America and will use the Suzuki products brand name.
“[The] confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process,” American Suzuki chief restructuring officer Freddie Reiss said in a statement. “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.”
Suzuki said the majority of its U.S. dealerships will continue offering parts and service work to customers and that the automaker will honor vehicle warranties.