Renco Group Sued Over Hummer Contract

Law360, Wilmington (June 20, 2012, 6:31 PM EDT) -- The Renco Group Inc. was hit with a derivative suit Wednesday for allegedly breaching a contract with MacAndrews & Forbes Holdings Inc. in a joint venture to manufacture the Hummer all-terrain truck.

According to a Delaware Chancery Court complaint, Renco and its owner, Ira Lennert, have squeezed $109 million of improper loans out of ILSHAR Capital LLC, one entity formed in the 2004 joint venture when MacAndrews & Forbes bought a majority stake in Hummer manufacturer AM General LLC from Renco.

The lawsuit — filed by...
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