Republic Engineered Products LLC, Fairlawn, Ohio, has filed for bankruptcy reorganization, a step that could allow its Ohio steel mills and other facilities to reopen.
A company news release states that the steelmaker has filed for protection under Chapter 11 rules and “is negotiating to finalize a debtor-in-possession financing commitment from among a number of offers. These funds will enable the company to resume operations by mid-week following an orderly shutdown that began [Thursday, Oct. 2].”
In its filing, Republic has listed assets of $481 million and debts of $468 million as of June 30, according to a report in the Akron Beacon-Journal.
The company started calling back shipping department employees over the weekend of Oct. 4 after suddenly closing down most operations on Oct. 2.
“Under the circumstances, this filing was the only way for Republic to restore operations and preserve the business,” says Republic Engineered Products CEO Joseph F. Lapinsky.
Union officials quoted in the Beacon-Journal news report were glad to hear the facilities will be re-started, but also expressed reservations concerning how many times the same facilities could be resurrected through bankruptcy proceedings.
Republic has steel mills with furnaces in Canton and Lorain, Ohio, and rolling and finishing facilities in Canton, Lorain and Massillon, Ohio, as well as in Lackawanna, N.Y., and Gary, Ind.
The company’s cash flow situation has been bleak since a mid-August explosion at its Lorain blast furnace halted production there for about six weeks. The company has not yet received any insurance claims reimbursement from the explosion, which was triggered by the power blackout that affected the eastern U.S.
Republic Engineered Products LLC was formed just over one year ago when outside investment groups purchased some of the assets of the former Republic Technologies International while that firm was in bankruptcy.
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