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American Suzuki Swiftly Glides to Plan Confirmation
The Honorable Scott Clarkson, Bankruptcy Judge for the Central District of California, has confirmed American Suzuki’s Plan of Liquidation. The plan provides for a transfer of American Suzuki’s ongoing motorcycle, marine, and ATV business to Suzuki Motor of America, Inc. for a price of approximately $135 million and facilitates American Suzuki’s withdrawal from the new auto market in the U.S. The plan also ensures continued warranty service and parts supplies through American Suzuki’s dealer network. Creditors that reached settlements with American Suzuki will be paid 100% of their claims.
In just over three short months, American Suzuki obtained nearly unanimous auto dealer and overwhelming creditor acceptance of its plan, which is unique to a chapter 11 case of this type and size. Notably, American Suzuki had not negotiated any plan treatment with unaffiliated parties before the bankruptcy. The reorganizations of other car companies such as Chrysler, GM and Daewoo took longer and faced much more opposition. PSZJ filed American Suzuki’s plan and disclosure statement on the same day as the bankruptcy filing, enabling American Suzuki to confirm its plan in record time.