Kentucky Electric Steel Inc., which produces special quality steel bar flats, said it filed for Chapter 11 bankruptcy protection after defaulting on senior notes and revolving credit agreements late last year.
Kentucky Electric Steel said it will seek approval from the courts of an agreement with its existing lenders -- National City Bank of Kentucky, SunTrust Bank, Connecticut General Life Insurance Company and Modern Woodmen of America -- to use cash collateral during a 60-day period.
The company warned last month that it planned to seek bankruptcy protection.
The formal filing was made in the United States Bankruptcy Court for the Eastern District of Kentucky, the company said.
George Smith, an employee of Navigant Consulting Inc., has been chosen as the company's chief restructuring officer.
The company also said Charles Hanebuth has stepped down as chairman due to medical problems and will be replaced by David Struve. Hanebuth will remain as a member of the board.