Milwaukee-based Grede Foundries today announced it has asked a federal bankruptcy court to approve a timeline for auction of the company, which has reached an agreement for its assets to be purchased by an affiliate of Minnesota-based Wayzata Investment Partners LLC.

Wayzata will serve as a "stalking horse" or opening bid in the auction.

There are also ongoing, active discussions with other potential bidders interested in purchasing the company, said Grede board chairman Richard Koenings. The purchase agreement with the affiliate of Wayzata will be the starting point for continuation of purchase discussions with other parties during the auction period over the next several weeks, he said.

"Additional parties have expressed a strong interest in purchasing our company, and our request to the court is the next step in the process that we expect will lead to a sale of the company to the highest bidder before the year's end," Koenings said. "The reorganization efforts we have undertaken in the last five months have strengthened our company and returned it to profitability, which has attracted the interest we have seen.  The agreement with Wayzata and the setting of the auction schedule puts our organization in a strong position to emerge from bankruptcy by year end as we have targeted."

Grede filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Wisconsin in June.

In this latest filing, the company asks the court to hold a Nov. 16 hearing on its timeline proposal. The proposed schedule calls for the auction to conclude by Dec. 9 and for a closing by Dec. 31, 2009.

"We anticipate there will be several substantive offers for the company, and our goal will be to get the best value possible," Koenings said. "With the structuring changes we have made and continuing indications that the economy may be rebounding, this is an excellent time to move this process forward and to an appropriate and successful conclusion."

The Grede facilities in Greenwood, S.C., and Vassar, Mich., are not part of the sale package and would be sold independently. Potential buyers have expressed interests in both of those plants, Koenings said.

"This is a significant step forward, and we are pleased to have made this progress during the last several months," Koenings said. "We would not be in this positive position but for the exceptional effort of every employee at every one of our facilities, under extremely challenging circumstances. We remain deeply committed to doing everything necessary to put the company on solid footing as the nation begins to rise out of the worst economic conditions since the Great Depression. When this process is completed by the end of the year, it will be beneficial for our customers, our employees, our vendors and the communities in which we operate."