Grede Foundries has filed 10 first day motions (3 procedural and 7 substantive). The 7 substantive motions are listed below.  The one of special interest is item 6, which deals authorization of Grede to enter into accomodation agreements with customers.  The presence of these agreements in an automotive supplier bankruptcy is a pretty good indication that there was a major supply disruption risk.

Grede has filed a 503(b)(9) procedural motion (which was not filed as a motion to be heard at the first day hearing) that seeks to preclude suppliers from filing 503(b)(9) motions and only permit the use of the general claims procedure.  This motion affords suppliers no substantive relief in terms of accelerated payment of 503(b)(9) claims.   The motion is actually anti-supplier.  It seeks to postpone and procedurally restrict the exercise by suppliers of their rights under 503(b)(9).

The substantive first day motions are:

1.    Motion For Order Authorizing (A) Maintenance of Existing Bank Accounts, (B) Continued Use of Existing Checks and Business Forms, and (C) Continued Use of Existing Cash Management System.

2.    Debtor’s Motion for Interim and Final Orders Pursuant to Sections 366 and 105 of the Bankruptcy Code (I) Prohibiting Utility Providers From Altering, Refusing, or Discontinuing Services to the Debtor; (II) Deeming Utility Providers Adequately Assured of Future Performance; and (III) Establishing Procedures to Determine Requests for Additional Adequate Assurance of Payment.

3.    Debtor’s Motion for an Order (A) Authorizing, but Not Directing Debtor
to Pay (1) Prepetition Employee Compensation, (2) Pay Outstanding Paychecks, (3) Reimburse Prepetition Employee Business Expenses,(4) Make Payments for Which Payroll Deductions Were Made, (5) Make Payments of Amounts Withheld for Taxes, and (6) Pay All Taxes And Costs Incident to the Foregoing Payments and Contributions.

4.    Debtor’s Motion For An Order Authorizing But Not Directing Debtor To
Continue payment Of Workers Compensation Benefits With Respect To Prepetition Workers Compensation Claims.

5.    Motion Authorizing Debtor to Pay Prepetition Claims Incurred but not
Paid Under its Self-Funded Employee Benefit Program.

6.    Motion of Debtor Grede Foundries, Inc. for an Order (A) Authorizing the
Debtor to Enter Into Certain Accommodation Agreements with Customers Pursuant to § 363 of the Bankruptcy Code, (B) Authorizing Debtor to Assume Certain Accommodation Agreements Pursuant to Section 365 of the Bankruptcy Code, and (C) Granting Related Relief.

7.    Debtor’s Motion for Interim and Final Orders (A) Authorizing Debtor to (i) Use Cash Collateral Pending A Final Hearing; (ii) Incur Postpetition Debt Pending A Final Hearing; (iii) Grant Adequate Protection And Provide Security And Other Relief To Agents And Lenders; And (B) Scheduling A Final Hearing and Establishing Related Notice Requirements.

A hearing (the “First Day Hearing”) with respect to the First Day Motions is scheduled for July 1, 2009 at 11:00 a.m. Central Time at the United States Bankruptcy Court for the United States District Court for the Western District of Wisconsin, U.S. Bankruptcy Court, 120 North Henry
Street, Madison, Wisconsin 53701-0548.

To see additional posts regarding the Grede Foundries Bankruptcy click the “Filed under” link below.