Bayou Steel Corp. has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas. The filing took place Jan. 22.
According to Jerry Pitts, president and COO of Bayou Steel, "While the decision to file a Chapter 11 petition was very difficult, we believe it was necessary to obtain the time needed to stabilize company finances and implement a plan to ensure long-term viability. Recently, we have been encouraged by an increase in shipments and an announced $15 per ton price increase that will be fully implemented by April."
The company also announced that it continues to negotiate for debtor-in-possession financing with the existing senior secured lender, subject to court approval.
The company, headquartered in LaPlace, La., owns and operates a steel minimill in LaPlace, Louisiana, and a rolling mill in Harriman, Tenn.