Rouge Industries To Be Acquired By Severstal in Chapter 11
October 24, 2003
(PRNewswire) Rouge Industries, Inc., Dearborn, Mich., reached an agreement on a non-binding letter of intent to sell substantially all its assets to Severstal, a Russian steel producer and automotive supplier. Rouge Industries, and its subsidiaries, Rouge Steel Company, QS Steel Inc. and Eveleth Taconite Co., have filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. During the bankruptcy process, Rouge Steel Company and its affiliates will continue to manufacture and ship steel products and provide uninterrupted services to its customers. Subject to Bankruptcy Court approval, Rouge secured a commitment for a $150 million debtor-in-possession (DIP) credit facility, which will provide up to $35 million of incremental liquidity during the period required to complete the sale.