Court approves American Suzuki reorganization plan - Trade Only Today

Court approves American Suzuki reorganization plan

Author:
Publish date:

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.

Click here for the full release.

Related

Senior Manager, Customer Service - Sea Ray

It is our people behind life’s passions who will make the big difference. If you are interested in becoming part of a company that delivers market leading products, driving your own career and working with brands committed to active lifestyles, then you’ve found your fit.