Kentucky Electric Steel says it will seek Chapter 11 bankruptcy shelter by the end of this month. The company also announced that its board of directors has requested that management begin a plan to shut down the company’s production facilities.
The company also announced that it is continue to look for ways to make a strategic exit of its business while in bankruptcy.
Kentucky Electric has defaulted on its 7.66% Senior Notes due November 1, 2005 (approximately $16.7 million currently outstanding) and under its $18 million revolving line of credit (approximately $13.3 million currently outstanding).
Jack Mehalko, Interim CEO, commented, "In spite of the willingness of our salaried and hourly workforce to make substantial concessions regarding wages and benefits, our continuing financial distress and lack of liquidity have required the company to suspend its manufacturing operations for the indefinite future. The reduction in the salaried workforce is commensurate with this reduced level of operations."
Kentucky Electric Steel, Inc. is a publicly held company which operates a specialty steel mini-mill, manufacturing special quality steel bar flats for the leaf-spring suspension, cold drawn bar conversion, truck trailer support beam, and steel service center.
Latest from Recycling Today
- Nucor names new president
- DOE rare earths funding is open to recyclers
- Design for Recycling Resolution introduced
- PetStar PET recycling plant expands
- Iron Bull addresses scrap handling needs with custom hoppers
- REgroup, CP Group to build advanced MRF in Nova Scotia
- Oregon county expands options for hard-to-recycling items
- Flexible plastic packaging initiative launches in Canada
