Document:

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                                                                   EXHIBIT 10.42
[PNC BANK LOGO]

                                                                   July 27, 2001

BY TELECOPY & OVERNIGHT MAIL

Re:    Amended and Restated Credit Agreement dated as of April 25, 2000, as
       amended (the "Agreement"), among Standard Automotive Corporation ("SAC"),
       Arell Machining Ltd. ("Arell"), formerly known as Critical Components
       Canada Ltd. (SAC and Arell each individually, a "Borrower" and
       collectively, the "Borrowers"), the several banks and other financial
       institutions from time to time parties thereto (the"Banks"), PNC Bank,
       National Association, as Administrative Agent (in such capacity, the
       "Administrative Agent") for the Banks thereunder, ING (U.S.) Capital LLC,
       as syndication agent, and PNC Capital Markets, Inc. and ING Barings LLC,
       as joint arrangers (Capitalized terms not otherwise defined in this
       letter shall have the meanings given to them the Agreement).

Standard Automotive Corporation
280 Park Avenue
21st Floor West
New York, NY 10017
Attention: Mr. James F. "Pat" O'Crowley III

Dear Mr. O'Crowley:

           The Second Forbearance Agreement expired on July 17, 2001, and the
Events of Default described below, among others, exist. Pursuant to ss. 10.1 of
the Agreement, and with the consent of the Required Banks, the Administrative
Agent declares the Commitments terminated as of the date of this letter, and the
Loans, Notes, and all other amounts owing under the Agreement are immediately
due and payable, all as set forth below.

           By letter dated December 19, 2000, the Administrative Agent
notified the Borrowers of the Defaults in the observance of and performance
under ss. 9.2(b) (Interest Coverage Ratio) and ss. 9.2(d) (Fixed Charge Coverage
Ratio) of the Agreement.

           By letter dated January 23, 2001, the Administrative Agent notified
the Borrowers of the Default arising from the U.S. Dollar Borrowing Base
Certificate delivered by SAC to the Administrative Agent on or about January 12,
2001. The U.S. Dollar Borrowing Base Certificate revealed that the aggregate
amount of Revolving Credit Exposure exceeded the U.S. Dollar Borrowing Base on
January 5, 2001, and certified that this Default existed as of January 5, 2001.

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           Section 5.7(d) of the Agreement requires SAC to prepay the Revolving
Credit Loans on the date that the U.S. Dollar Borrowing Base Certificate was
delivered in an amount equal to the excess of the aggregate amount of the
Revolving Credit Exposure over the U.S. Dollar Borrowing Base on that date. The
excess existing on that date of at least $5,516,000 was not and has not since
been paid. Because SAC had not prepaid the excess under Section 5.7(d), it was
notified that it was is in Default under ss.ss. 5.7 and 8.3 (Payment of
Obligations), among other sections in the Agreement, and that Events of Default
existed under ss. 10.1 (Events of Default) of the Agreement.

           For their failure to timely pay certain excise taxes to the Internal
Revenue Services, by letter dated February 8, 2001, the Administrative Agent
notified the Borrowers of their Defaults under ss. 6.8 (Taxes), ss. 8.3 (Payment
of Obligations), and ss. 12.4 (Survival of Representations and Warranties) of
the Agreement.

           Because the Defaults set forth in the February 8th letter continued
to exist, by letter dated February 14, 2001, the Administrative Agent notified
the Borrowers that Default Interest was being assessed pursuant to ss. 5.3
(Default Interest) of the Agreement, and that Eurodollar Loans were being
converted to Base Rate Loans pursuant to ss. 5.14 (Conversion and Continuation
Options) of the Agreement.

           In the Forbearance Agreement entered into as of April 2, 2001 (the
"First Forbearance Agreement"), the Borrowers acknowledged that the Events of
Default set forth in the above mentioned letters had occurred, and existed as of
the First Forbearance Agreement. In addition, the Borrowers acknowledged that
their failure to make the principal and interest payments due March 31, 2001,
constituted further Events of Default. The First Forbearance Agreement expired
on or about May 17, 2001.

           In the Second Forbearance Agreement effective as of May 21, 2001, the
Borrowers acknowledged again that the Events of Default set forth in the
above-mentioned letters had occurred, and existed as of the Second Forbearance
Agreement. The Borrowers acknowledged again that their failure to make the
principal and interest payments due March 31, 2001, constituted further Events
of Default. The Second Forbearance Agreement expired on July 17, 2001.

           During the forbearance period under the Second Forbearance Agreement,
the Borrowers defaulted under the Agreement by failing to make the principal and
interest payments due June 30, 2001, which constituted additional Events of
Default under ss. 10.1 (Events of Default) of the Agreement.

           The above-mentioned Events of Default continue to exist. Other Events
of Default might also exist and be continuing. Accordingly, pursuant to ss. 10.1
of the Agreement, the Commitments are terminated as of the date of this letter,
and the Loans and Notes are immediately due and payable, with accrued interest
and all other amounts owing under the Agreement. Please contact James DeGenova
of PNC Bank, National Association at (732) 220-3653 for the exact amount due and
owing.

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           If the Borrowers do not pay all amounts due within five days of the
date of this letter, then the Administrative Agent and the Banks reserve the
right without further notice to exercise all rights and remedies under the Loan
Documents or otherwise, including but not limited to collecting receivables owed
to the Borrowers or Guarantors directly from the account debtors, transferring
into the Administrative Agent's name or its nominee's name all or part of the
pledged stock, taking control of and voting and managing all or part of the
pledged stock, and instituting suit, including foreclosure actions, to collect
the debt as well as costs and legal fees.

           The Administrative Agent and the Banks reserve all rights and
remedies, and nothing contained in or omitted from this letter shall constitute
a waiver of those rights and remedies. Moreover, the receipt and acceptance of
any partial payments now or in the future shall not constitute an agreement to
forbear by the Administrative Agent and the Banks, and shall not constitute a
modification to the Agreement or Loan Documents or a defense in any proceeding.

                                    Very truly yours,

                                    PNC BANK, NATIONAL ASSOCIATION,
                                    as Administrative Agent

                                    By:  /s/ JAMES R. DEGENOVA
                                         -------------------------------
                                             James R. DeGenova
                                             Vice President

cc:   Richard W. Hill, Esq. (telecopy & regular mail)
      Mark Mandel, Esq. (telecopy & regular mail)
      Kevin Fisher, Esq. (telecopy & regular mail)
      Attached Service List (telecopy & regular mail)EXHIBIT 10.43
[PNC LOGO]

AUGUST 9, 2001

BY TELECOPY & UPS

Re:   Amended and Restated Credit Agreement dated as of April 25, 2000, as
      amended (the "Agreement"), among Standard Automotive Corporation ("SAC"),
      Arell Machining Ltd. ("Arell"), formerly known as Critical Components
      Canada Ltd. (SAC and Arell each individually, a "Borrower" and
      collectively, the "Borrowers"), the several banks and other financial
      institutions from time to time parties thereto (the "Banks"), PNC Bank,
      National Association, as Administrative Agent (in such capacity, the
      "Administrative Agent") for the Banks thereunder, ING (U.S.) Capital LLC,
      as syndication agent, and PNC Capital Markets, Inc. and ING Barings LLC,
      as joint arrangers (Capitalized terms not otherwise defined in this letter
      shall have the meanings given to them in the Agreement).

Standard Automotive Corporation
401 Route 206 North
Somerville, New Jersey 08876
Attention: Mr. James F. "Pat" O'Crowley III

Dear Mr. O'Crowley:

           Reference is made to the letter of July 27, 2001 (the "Letter"). In
the Letter, the Administrative Agent terminated the Commitments and declared the
Loans, Notes, and all other amounts owing under the Agreement immediately due
and payable.

           Subject to Borrowers' express averment and consent to the provisions
set forth below, the Administrative Agent withdraws the Letter.

           Borrowers expressly agree as follows:

1) The Defaults and Events of Default set forth in the Letter
   continue to exist.
2) Each Borrower waives and affirmatively agrees not to allege or otherwise
   pursue any or all defenses, affirmative defenses, counterclaims, claims,
   causes of action, setoffs, or other rights that they may have to contest (a)
   any Designated Defaults (as defined in the Second Forbearance Agreement
   effective as of May 21, 2001) that have been declared or any Events of
   Default that could be declared by the Administrative Agent; (b) any provision
   of the Loan Documents or any forbearance agreement; (c) the security interest
   of Administrative Agent in any property, whether real or personal, tangible
   or intangible, or any right or other interest, now or hereafter arising in
   connection with the Collateral; or (d) the conduct of Administrative Agent in
   administering the financing arrangements between Borrowers and Banks.

<PAGE>

3) Each Borrower hereby releases, remises, acquits, and forever discharges the
   Administrative Agent, the Banks, the Syndication Agent, and the Joint
   Arrangers together with their employees, agents, representatives,
   consultants, attorneys, fiduciaries, officers, directors, partners,
   predecessors, successors and assigns, subsidiary corporations, parent
   corporations, and related corporate divisions (all of the foregoing
   hereinafter called the "Released Parties") from any and all actions and
   causes of action, judgments, executions, suits, debts, claims, demands,
   liabilities, obligations, damages and expenses of any and every character,
   known or unknown, direct and or indirect, at law or in equity, of whatsoever
   kind or nature, for or because of any matter or things done, omitted, or
   suffered to be done by any of the Released Parties prior to and including the
   date of execution hereof, and in any way directly or indirectly arising out
   of or in any way connected with any forbearance agreement, the Agreement, or
   the Loan Documents (all of the foregoing hereinafter called the "Released
   Matters").
4) Each Borrower agrees that the Administrative Agent, with the consent of the
   Required Banks, may at any time, pursuant to the Agreement, declare the
   Commitments terminated and the Loans, Notes and all other amounts owing under
   the Agreement immediately due and payable.
5) The Administrative Agent and the Banks reserve all rights and remedies in the
   Agreement, or otherwise, and nothing contained in or omitted from this letter
   shall constitute a waiver of those rights and remedies.

                                    Very truly yours,

                                    PNC BANK, NATIONAL ASSOCIATION,
                                    as Administrative Agent

                                    /s/ ELLEN BRIGGS

                                    Ellen Briggs
                                    Senior Vice President

STANDARD AUTOMOTIVE CORPORATION, on behalf of itself and each Borrower expressly
agrees and consents to all of the provisions of this letter.

/s/ JAMES F. O'CROWLEY, III
--------------------------------
James F. "Pat" O'Crowley, III
President & Chief Executive Officer

      cc:  Richard W. Hill, Esq. (telecopy & regular mail)
           Mark Mandel, Esq. (telecopy & regular mail)
           Kevin Fisher, Esq. (telecopy & regular mail)
           Attached Service List (telecopy & regular mail)

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