American Suzuki Motor Corporation has won court approval to exit Chapter 11 bankruptcy protection into voluntary liquidation, thereby ceasing distribution of Suzuki cars in the USA.
A judge sitting in the Central District of California’s US Bankruptcy Court during the final week of February accepted a plan that paves the way for the company to close down by the end of March, following the agreement of its terms by creditors. This allows for the immediate transfer of American Suzuki’s profitable motorcycle, ATV and marine businesses back to a newly-formed US unit of Japanese parent Suzuki Motor Corporation, presumably in return for sufficient funds to clear debts.
“Today’s confirmation is a significant milestone and is one of the last remaining steps in our realignment process,” said American Suzuki chief restructuring officer Freddie Reiss in a statement. “This will promote the long-term growth of the motorcycle/ATV and marine divisions, as well as providing automotive parts and service.”
Suzuki declared its entire American operation insolvent last autumn, to end losses in the US automotive market, avoid the cost of federal regulation and abandon a national car sales network in which more than two-thirds of dealers sold fewer than five vehicles a month.