Republic Engineered Products LLC reports that the federal bankruptcy court overseeing its Chapter 11 reorganization process has approved the company’s asset sale to Perry Strategic Capital Inc. Perry, a private-equity firm will pay $277.5 million for the long-products producer, which will be reorganized as a new company -- PAV Republic Inc. -- by the end of the year.
Joseph F. Lapinsky, president and CEO of Republic, said, "This transaction assures a stable source of quality steel for our customers and provides job security for our employees.”
Republic entered bankruptcy in October, having emerged from a prior reorganization in 2002. The company was in the midst of some modernization programs and reestablishing its market presence when the August 14 Midwest/Northeast power outage caused serious damage to some vital equipment and disrupted production.
All of Republic’s current operations will be transferred to a new company with the same name, Republic Engineered Products. This covers plants in Canton, Lorain, and Massillon, OH; Lackawanna, NY; and Gary, IN. Also, Republic plans to bid for the Hamilton, ON, plant still on the block from the asset sale of Republic Technologies Intl., the organization that entered bankruptcy in 2001.
The current labor contract with the United Steelworkers of America will remain in place with the new organization.