Suzuki receives bankruptcy approval for U.S. operations
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.
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.