Item 2.06 Material Impairments.
On February 9, 2009, the Board of Directors of Neenah Foundry Company ("Neenah")
and its indirect parent, Neenah Enterprises, Inc. ("NEI", and together with
Neenah, the "Company"), approved the closure of the Company's Gregg Industries,
Inc. facility. The Company expects that the facility, which is located in El
Monte, California, will continue to operate until May 2009.
The decision to close the facility was made due to the pressures of an overall
weak economy and the loss of manufacturing orders for the Gregg facility.
The Company is unable at this time to provide a good faith estimate of the costs
associated with the action described above. The Company will file an amended
report on Form 8-K under Item 2.05 within four business days of making such a
determination. The Company also intends to file an amended report on Form 8-K
under Item 2.06 if it concludes that a material charge for impairment relating
to the action described above is required within four business days of reaching
such a determination, including, if determinable at that time, an estimate of
the amount or ranges of amounts of the charge(s).
A copy of the press release announcing this action is filed as Exhibit 99.1 to
this Current Report on Form 8-K and is incorporated herein by reference.
Forward- Looking Statements
This Current Report on Form 8-K may be viewed to contain forward-looking
statements. These statements are based on the Company's current expectations and
involve risks and uncertainties that could cause actual results and events to
differ materially from those described in the statements. The words "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar
expressions are generally intended to identify forward-looking statements.
Factors that could cause our results to differ materially from current
expectations include our ability to successfully amend our credit agreement to
provide financial covenant relief, if necessary, and/or our ability to otherwise
maintain or obtain adequate sources of liquidity; material disruptions to the
major industries we serve; continued price fluctuations in the scrap metal
market; increases in price or interruptions in the availability of metallurgical
coke; regulatory restrictions or requirements; developments affecting the
valuation or prospects of the casting and forging industries generally or our
business in particular; the outcome of legal proceedings in which we are
involved; changes in economic conditions affecting us, our customers and our
suppliers; and other factors described or referenced in our Form 10-K for the
year ended September 30, 2008 or subsequent SEC filings. You should not place
undue reliance on these forward-looking statements, which reflect our opinions
only as of the date of this report. We undertake no obligation to publicly
release any revisions to the forward-looking statements after the date of this
document.
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