Suzuki

Suzuki receives bankruptcy approval for U.S. operations

The American Suzuki Motor Corporation has received bankruptcy court approval of up to $100 million in loans.

An American bankruptcy court has approved the American Suzuki Motor Corporation (ASMC) for debtor-in-possession financing of up to $100 million. The money is split in two, allowing up to $50M for operations and up to $50M for inventory purchases from the Suzuki Motor Corporation (SMC). This will be the cash-on-hand Suzuki needs to continue operations through Chapter 11 proceedings.

Suzuki's American arm filed for bankruptcy about a month ago, shortly after being listed as one of the two companies selling cars in the U.S. that I thought needed to just give up.

Despite the bankruptcy, the company plans to use some of the $50M in inventory funds to bring 2,500 additional cars from Japan to the U.S. - cars built for the market before and during ASMC's bankruptcy planning - enough to continue current sales through December and January. Interestingly, Suzuki showed an increase of 22% in sales year-on-year for the month of November, selling 2,200 units last month.

http://www.newspressusa.com/public/ViewPressRelease.aspx?pr=31579&pr_ref=3049

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Comments

just another gm spinoff sucking american taxpayers dry
Not sure how that's relevant..

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