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Republic Responds to Court Order for Resumption of Shipments to American Axle
06/25/2009 - Responding to a circuit court order to resume steel shipments, Republic says it appreciates the Court’s recognition that Republic is entitled to demand adequate assurance of performance from American Axle.
Responding to a circuit court order to resume steel shipments to American Axle, Republic Engineered Products indicated its appreciation for the Court’s recognition that Republic was entitled to demand adequate assurance of performance from American Axle.
"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.
Republic noted that the Court also recognized that it 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.
As a condition to Republic continuing to ship steel parts to American Axle, the Court is requiring American Axle to post security with the Court, paying Republic under accelerated payment terms. American Axle will also be required to pay into the Court the difference between the pricing under the supply agreement and current market pricing.
Republic Engineered Products is a leading North American supplier of special bar quality (SBQ) steel. 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, Ont.
