Another Bankruptcy Filing

Renco Metals, Inc. announced that Renco Metals and its wholly-owned subsidiary, Magnesium Corporation of America, have filed voluntary petitions to reorganize their businesses under Chapter 11 of the United States Bankruptcy Code.

Magcorp has reached an agreement with its existing working capital lender and, subject to court approval, expects to have a formal debtor-in-possession facility in place shortly. Magcorp believes that the facility will provide ample funding to maintain normalized business relationships with its vendors and uninterrupted supply of products to its customers and for necessary capital expenditures.

While Magcorp has been able to meet its short term debt obligations, liquidity problems arising primarily from price pressures created by foreign imports have prevented Magcorp from generating sufficient profits to enable Renco Metals to service its long term debt.