"With the help of our new board of directors, and on the strength of new customer contracts and supplier agreements, we have every reason to be optimistic about Citation's future," said Ed Buker, President and CEO.

Citation Corp. filed for Chapter 11 protection in September 2004 to resolve cash flow problems linked to a sluggish economy, reduced orders and the unprecedented rising costs of steel scrap and other commodities.

Citation is one of several high-profile forging and casting companies to seek bankruptcy protection in the past year. While all steel purchasers have been suffering from record steel prices, Citation has been particularly hard hit. In the year and a half before Citation's bankruptcy filing, the price of steel scrap - the primary raw material used to make ferrous cast and forged products, which account for half of Citation's sales - nearly quadrupled.

Citation's reorganization plan erases much of the debt that had dragged down Citation's profitability. At the time of its filing, Citation had a total debt of $550 million in secured loans, letters of credit and trade credit. Citation's reorganization plan reduces the company's bank debt to $180 million and total debt to $210 million. Citation also emerges from bankruptcy with a new $80-million line of credit, $50 million of which remains available.

"This restructuring of our debt will allow us to focus more of our capital on products and process improvements," Buker said. Creditors approved the plan on May 2, and the court signed a confirmation order on May 18. Customer agreements making the exit from bankruptcy official have now been signed.

While Citation will retain its pre-bankruptcy management team, creditors named a new board of directors to help steer the company through the persistent challenges of the marketplace. The new directors are:

• Chairman William E. Redmond, Jr. of Gansevoort, N.Y., who has extensive experience in corporate restructuring and post-bankruptcy management.
• Alan E. Antoniewicz of Sheboygan, Wisc., a senior operations executive with broad experience in construction, mining and manufacturing.
• William Allan Hopkins of Naples Fla., former president and chief executive officer for Atlas Steels Inc. and an expert in the steel industry and in corporate restructuring.
• Tom S. O'Donoghue of Northfield, Ill., managing partner for Corporate Revitalization Partners LLC. O'Donoghue has expertise as an operator, borrower, lender, consultant and investor working with financially challenged businesses.
• Ronald M. Ruzic of Ithaca, N.Y., a retired executive vice president and former group president and general manager for Borg-Warner, Inc.
• Richard J. Sloan of Brighton, Mich., a retired veteran of the automotive industry who has served as president or managing director of four business units in the United States and Europe.

Each of the new directors has strengths in areas that are especially important to Citation's recovery, Buker said. "My management team and I look forward to their counsel as we continue to expand our products and markets, enhance our efficiencies and technology and regain our profitability."

Buker also praised the company's management team and employees for continuing to focus on quality, delivery and cost during the Chapter 11 process.

"We never missed a delivery because of Chapter 11," he said. "Our customers have rewarded our efforts with several significant new contracts that demonstrate their faith in our ability to meet their expectations."

Citation is a privately held corporation based in Birmingham, Ala., that produces high-quality cast, forged, and machined components for several market segments, including the automotive, heavy truck, construction, aerospace, agricultural and commercial industries. The company employs 5,100 at 16 divisions in Alabama, Indiana, Wisconsin, Michigan, Illinois, Texas, and North Carolina.

Citation's aluminum and iron castings and steel forgings are used in a wide variety of applications, including braking, steering, engine and drive train parts for passenger cars and light trucks; suspension and transmission parts for heavy trucks; ground engaging tools for construction equipment; parts for aircraft engines, landing gear and structural airframes; and other critical parts for capital and durable goods.

For more information, contact Gene Monteith at 614-224-0600.