REPUBLIC Bankrupt steelmaker receives a $225 million buyout offer

FAIRLAWN, Ohio (AP) -- Republic Engineered Products, which earlier this month filed for bankruptcy protection, announced Friday it has received a buyout offer.
Perry Strategic Capital Inc. would buy the company for more than $225 million, said John Dillard, a Perry spokesman. Perry Strategic Capital is a part of the New York-based private investment firm Perry Capital.
Republic, which has 2,350 workers in three states, is still reviewing the offer but wants to obtain court approval by December and complete the sale by the end of the year, spokesman John Willoughby said.
Republic has filed a motion with the U.S. Bankruptcy court in Akron, requesting "stalking horse" status for the bid, which would set the price other bidders must beat and entitles Perry to a predetermined fee if another buyer is chosen.
"Perry Strategic Capital strongly believes in Republic's management team and 2,400 employees, and the company's efforts to emerge from bankruptcy," Perry Capital's senior managing director Paul Leff said in a statement. "We bring substantial capital and experience to assist management's continuing efforts to rebuild and revitalize Republic."
The Northeast Ohio steelmaker filed for Chapter 11 reorganization protection from creditors in U.S. Bankruptcy Court in Cleveland on Oct. 6, citing contributing factors including a slow economy and the Aug. 14 blackout that disabled its main blast furnace in Lorain.
Earlier this month, Republic closed nearly all of its operations and said it hoped to restart as soon as possible. Republic operates plants in Canton, Lorain and Massillon, Ohio; Lackawanna, N.Y.; and Gary, Ind.