SOURCE: Shiloh Industries

March 20, 2007 17:33 ET

Shiloh Industries Announces Results of Litigation

VALLEY CITY, OH -- (MARKET WIRE) -- March 20, 2007 -- Shiloh Industries, Inc. (NASDAQ: SHLO) announced that on March 16, 2007, a jury verdict was entered against the Company in the United States District Court in Akron, Ohio following a jury trial in a claim by the bankruptcy estate of Valley City Steel, LLC relating to the Company's sale of certain assets in 2001. Valley City Steel, LLC claimed that the Company's sale of certain assets to Valley City Steel, LLC, in connection with the creation of the joint venture in which the Company was a minority shareholder, amounted to a constructive fraudulent conveyance under Ohio law. The plaintiff also alleged that certain amounts were due and owing on account to Valley City Steel, LLC. The jury verdict against the Company was approximately $4.9 million, $4.6 million of which related to the constructive fraudulent conveyance claim. The Company believes that the verdict relating to the constructive fraudulent conveyance claim is contrary to the facts and the law and the Company intends to file post-trial motions including a motion for a new trial and other relief. The Company will vigorously appeal any final constructive fraudulent conveyance judgment if the court denies the post-trial motions. The Company believes that there are valid grounds to reverse, or reduce the damages applicable to, the portion of any final judgment relating to the constructive fraudulent conveyance claim on appeal. There can be no assurance that the Company's appeal will be successful.

Headquartered in Valley City, Ohio, Shiloh Industries is a leading manufacturer of first operation blanks, engineered welded blanks, complex stampings and modular assemblies for the automotive and heavy truck industries. The Company has 15 wholly owned subsidiaries at locations in Ohio, Georgia, Michigan, Tennessee and Mexico, and employs approximately 1,890.

Contact Information

  • CONTACT:
    Stephen E. Graham
    Chief Financial Officer
    Shiloh Industries, Inc.
    (330) 558-2600