Super Steel Products Corp.: Files state court petition for receivership, sale of assets

Contact: Evan N. Zeppos – (414) 276-6237 or (414) 491-6610

Section 128 Filing Could Lead to New Ownership and New Growth for Longtime Milwaukee Manufacturer

Super Steel Chairman and Shareholder Luber to Submit Initial Bid to Purchase Company

MILWAUKEE, Wis. – Super Steel Products Corp. – a Milwaukee-based manufacturer of metal products and equipment for the industrial, construction, agricultural and railroad markets – today announced it has filed a petition for receivership under Chapter 128 of the Wisconsin Statutes. Super Steel President Jim Schmelzer said the filing, made today in Milwaukee County Circuit Court, is part of a strategic business effort to reposition the company for new growth and success as the United States emerges from the current economic downturn. The company has requested that Michael S. Polsky, a Milwaukee lawyer, be the court-appointed receiver.

Schmelzer stressed that Super Steel remains in business, that it expects substantially all jobs to remain in place and that the company will continue to accept and fill all customer orders throughout the Chapter 128 process. The company has secured funding to cover its operations during the reorganization effort, he said.

“Today’s filing gives Super Steel the time and framework to reposition while we continue to operate our business as usual. We have a going business, a backlog of orders and excellent employees – this step changes none of that,” he said. “Super Steel will keep supporting its workforce, keep buying goods and services from its vendors and keep providing customers with the quality products and services they’ve come to expect from us. Our goal is to preserve and strengthen the business so that Super Steel can be an even more successful and stronger competitor in the future.”

In conjunction with the Chapter 128 filing, Schmelzer said that Super Steel Chairman Fred Luber, who currently holds a significant stake in the business, intends to submit a bid to purchase the company’s assets. Other interested buyers can file bids as well, with the winning bid to be determined by the court. No bid deadline has been set at this point.

While all work will continue and while Super Steel expects its workers to continue to have their jobs, Schmelzer said a so-called WARN (Worker Adjustment & Retraining Notice) Act notice and a notice under the Wisconsin Business Closing Law must be provided according to federal and state law. The notices are required in this case because the structure of the Chapter 128 proceeding could technically result in the administrative termination of all employees at the end of the process even though the receiver intends to sell the company as a going concern. Any buyer of the business is expected to immediately rehire substantially all Super Steel employees under its new ownership and operation of the business.

The decision to reorganize was difficult, but necessary, Schmelzer said.

“It’s no secret that times have been tough in the manufacturing industry. We’ve experienced significant challenges along with our customers, our competitors and everyone else,” he said. “But we also see good signs that the economy is improving. As that turnaround approaches, we want to ensure Super Steel is effectively positioned to maximize its opportunities.

“Many people, including our employees, customers, vendors and many others, want Super Steel to succeed – and for that, we are grateful,” Schmelzer said. “We look forward to the successful conclusion of this process and to continuing the quality work our company has done here in Milwaukee for decades.”

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About Super Steel Products Corp.

Super Steel Products Corp. manufactures steel and metal equipment and products for the freight locomotive and passenger rail industries, as well as the industrial, construction and agricultural markets. The company operates at two facilities in Milwaukee – its headquarters and manufacturing facility at 7900 W. Tower Ave., and its transportation and manufacturing facility at 7100 W. Calumet Road. The company, which employs approximately 250 people, has roots in Milwaukee dating back to 1923.