Ivaco Inc.’s wholly owned U.S. subsidiary, Atlantic Steel Co., has filed under Chapter 7 of the U.S. Bankruptcy Code.
The subsidiary was placed under bankruptcy protection last month at the same time as its Montreal-based parent. Filing under Chapter 7 means the subsidiary, composed of four steel plants, will be sold off.
The U.S. plants are located in Georgia, Michigan and New York.
"These companies were no longer active and this action was taken as part of our overall restructuring process," Ivaco chief executive Gordon Silverman said in a statement after stock markets closed.
Ivaco, currently operating under the protection of the Companies' Creditors Arrangement Act, is preparing a restructuring plan to return its core businesses to profitability.
It said in September it was hurt by the stronger Canadian dollar, a weak North American economy and rising costs for labor and scrap metal.Latest from Recycling Today
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