FAIRLAWN, OHIO Republic gets financing to resume operations

The steel company is looking for a buyer.
FAIRLAWN, Ohio (AP) -- Republic Engineered Products LLC has obtained $45 million of additional credit for operations and intends to resume making and finishing steel, a company spokesman said Thursday.
The debtor-in-possession financing for the specialty steel bar company was arranged though a group of financial institutions, led by Fleet Capital Corp., Republic spokesman John Willoughby said.
He also said that Republic officials revealed in a bankruptcy court hearing that the company is seeking a buyer. He said Perry Strategic Capital Inc. has expressed an interest.
If Republic can show it has a potential buyer, Bankruptcy Judge Marilyn Shea-Stonum can set an auction date so that bidders can look over the company and submit proposals. Perry could then seek "stalking horse" status in the bidding, meaning it will set the price other bidders must beat and receive a predetermined fee if another buyer is chosen.
"The process we began earlier this week of resuming operations will be maintained and stabilized. We will fill our customers' needs and give them the confidence that we will be here to supply them," Willoughby said.
Filed for Chapter 11
The steelmaker filed for Chapter 11 reorganization protection from creditors in U.S. Bankruptcy Court on Monday, citing the Aug. 14 blackout that disabled its main blast furnace in Lorain, Ohio, a slow economy and other factors.
Republic closed nearly all of its operations last week and said it hoped to restart them as soon as possible. The Chapter 11 petition, filed in U.S. Bankruptcy Court in Cleveland, lists assets of $481 million and debts of $468 million. Court documents show the company's creditors included 14 banks and other lenders.
The northeast Ohio steel company, with 2,350 workers in three states, was formed just over a year ago as a result of a different bankruptcy. The company, based in the Akron suburb of Fairlawn, operates plants in Canton, Lorain and Massillon, Ohio; Lackawanna, N.Y.; and Gary, Ind.
Steel bar maker Republic Technologies International filed for bankruptcy court protection in 2001 and closed Aug. 16, 2002.