EARLIER:Republic Receives +$225-Million Offer

Perry bid may be countered or topped at auction

Republic Engineered Products LLC, which earlier this month started its second tour in Chapter-11 creditor protection, has a +$225-million buy-out offer from Perry Strategic Capital Inc. Perry is a private-equity firm that has formed a new entity, PAV Republic, Inc., to buy the steelmaker's assets.

Republic listed assets of $481 million and liabilities of $467.9 million in its bankruptcy filing. While it was rebuilding its customer base after the last restructuring that sold off non-core assets, Republic was seriously impaired by the August 14 blackout. A blast furnace and rolling mill at Lorain, OH, were damaged, disrupting production there and downstream.

The Perry offer may be countered or raised by others, and Republic's financial advisors will review the offers. Republic is expected to gain bankruptcy court approval and complete the asset sale in December.

The court has the terms of the offer available for others to review in the course of the bankruptcy-auction process.

Republic asked the bankruptcy court to assign a near-term deadline for other bids, for an auction date, and a final hearing on the sale.

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