Metal Management (MM) Filed Complaint Against Wheeling-Pittsburgh Steel (WPSC) in the NY Supreme Court

June 11, 2007 9:42 AM EDT

In Today's 8-K Filing From Metal Management (NYSE: MM) On June 7, 2007, Metal Management, Inc. filed a complaint against Wheeling-Pittsburgh Steel Corporation (Nasdaq: WPSC) in the Supreme Court of the State of New York County of New York. The Complaint arises from a series of purchase orders issued by WPSC to MM beginning on or about February 20, 2007, for the purchase, shipment and delivery from MM to WPSC of specified quantities and types of scrap metal. In the Complaint, MM is seeking damages for the breach, anticipatory breach, wrongful rejection and repudiation of the Purchase Orders based on the following WPSC actions: (1) WPSC accepted delivery without objection of approximately $31 million worth of scrap metal sold to it by MM but has failed to make payment for those goods when due; (2) by its conduct, WPSC has indicated its intention not to pay for an additional amount of approximately $8 million in scrap metal purchased by it but where payment will be coming due shortly; and (3) WPSC has blanket rejected scrap metal as nonconforming, in some cases even before the scrap metal was delivered and inspected, and without giving MM an opportunity to cure any goods alleged by WPSC to be nonconforming as required by the Purchase Orders and the Uniform Commercial Code. Stated in terms of tonnage, WPSC has rejected and/or repudiated agreed Purchase Orders for approximately 86,400 tons of scrap metal, of which 76,800 tons not yet been shipped or which is en route to WPSC and 9,600 tons of which MM has already delivered to WPSC, in addition to the approximately 16,000 tons of scrap metal previously rejected. The damages being sought include the contractual price of the goods, plus incidental damages, costs and disbursements of the action, prejudgment interest and such other relief as may be just and proper.

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