A US Federal Bankruptcy Court sitting in Santa Ana, California on 31 December 2012, has granted permission to American Suzuki for the sale of its motorcycle, power products and ATV distribution operation back to the Japanese parent.
American Suzuki declared itself insolvent at the beginning of last November, as a convenient means to close down its loss-making car business with minimised contractual obligations to dealers. It will now be allowed to sell the rest to a new US affiliate entity of Suzuki Motor Corporation in Japan for the equivalent of about £60m, barring the unlikely possibility of any higher bid.
The presiding judge, Scott Clarkson, overruled an objection from the US Trustee, an arm of the US Justice Department which monitors corporate bankruptcies. Government lawyers had argued that such a stitched-up deal with Suzuki would actively discourage competing bidders.