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FOR IMMEDIATE RELEASE
Court Order and Opinion - American Axle & Manufacturing, Inc. -v- Republic Engineered Products, Inc.
CANTON, Ohio (June 24, 2009) - Republic Engineered Products, Inc., has reviewed the June 24, 2009 Order and Opinion issued by the Honorable Nanci J. Grant in American Axle & Manufacturing, Inc., et al. v. Republic Engineered Products, Inc., Case No. 2009-101263-CK, Circuit Court for Oakland County, Michigan.
Republic is pleased that the Court recognized that Republic was entitled to demand adequate assurance of performance from American Axle.
The Court also recognized that Republic has remained willing to ship steel parts to American Axle in order to ensure that there was no disruption to American Axle's production schedule or to the American automotive industry at large.
"This ruling reaffirms our position that Republic never desired to refuse to ship product to American Axle, but rather we were entitled to do business under new terms and conditions in order to provide adequate assurance," said Ted Thielens, Republic's Executive Vice President.
Until a trial on the merits can determine the obligations of the parties, Republic is satisfied that the Court has required that American Axle post security with the Court as a condition to Republic continuing to ship steel parts to American Axle. Specifically, the Court has required American Axle to pay Republic pursuant to accelerated payment terms and also to pay into the Court the difference between the pricing under the supply agreement and current market pricing. Republic looks forward to the opportunity to fully present its case at trial.
Republic Engineered Products, Inc., is North America's leading supplier of special bar quality (SBQ) steel, a highly engineered product used in axles, drive trains, suspensions and other critical components of automobiles, off-highway vehicles and industrial equipment. With headquarters in Canton, Ohio, the company operates steelmaking centers in Canton and Lorain, Ohio, and value-added rolling and finishing facilities in Canton, Lorain and Massillon, Ohio; Lackawanna, N.Y.; Gary, Ind.; and Hamilton, Ontario.
Published on 2009-06-25
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