BREA, Calif. — American Suzuki Motor Corporation (ASMC)’s disclosure statement for its amended Chapter 11 Plan was approved by Judge Scott Clarkson of the U.S. Bankruptcy Court of the Central District of California Wednesday. The court’s approval of the disclosure statement allows ASMC to begin soliciting votes to accept the plan.
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, NounCo Inc., will use the ASMC brand name and operate in the continental U.S. It will also act as the holder of 100 percent equity interests with its $95 million purchase, plus the cost of inventory not to exceed $4 million.
“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,” said M. Freddie Reiss, ASMC’s chief restructuring officer, in a statement.
“The approval of our disclosure statement represents an important step in our realignment and restructuring process,” he added.
Votes on the plan must be received by Suzuki's voting agent, Rust Omni, by Feb. 21. Solicitation materials are expected to be mailed to all creditors entitled to vote on the plan no later than Jan. 24. A hearing to consider confirmation of the plan is currently scheduled for Feb. 28, at 9 a.m. PT.