Republic Likely to Keep Melting

Financial arrangements are being made that should keep special bar quality steel mills owned by bankrupt Republic Technologies International, Fairlawn, Ohio, up and running.

One potential  buyer, known as RTI Acquisition Corp. (RAC), has secured Hunt Investment Group LP of Dallas, as a new equity partner in its bid to purchase the company’s steelmaking assets in Canton and Lorain, Ohio, as well as other facilities operated by Republic.

The RAC partnership, which is led by KPS Special Situations Fund LP, New York, says it has also signed an agreement in principle with Republic's existing bank group to finance its transaction. Republic’s bank group is led by Fleet Capital, J.P. Morgan Chase and Bank of America.

RAC says it has now concluded significant agreements concerning the transaction with Republic, Republic's bank group and with Republic's hourly employees as represented by the United Steelworkers of America. “These agreements will clear the way for the completion of the bankruptcy process and the sale of the company's primary assets,” according to a Republic news release.

“The agreement in principle on new financing is an important step in Republic’s effort to emerge from Chapter 11 stronger than ever.,” says Joseph F. Lapinsky, Republic’s president and CEO. " This will facilitate the business plan developed by RAC, which represents the best course for serving our creditors and customers, saving jobs, protecting our suppliers and benefiting the communities where Republic operates."

A second partnership, based in Cleveland, is also reportedly preparing a business plan and bid package for a chance to purchase Republic’s assets. That partnership, is reportedly conducting due diligence in an effort to come up with a proposal for Republic and the bankruptcy court to consider by the end of May.