Metal Management Closes Chapter 11 Book

 Metal Management Inc., Chicago, has met the conditions required for its emergence from Chapter 11 bankruptcy and has begun operating without bankruptcy court supervision.

The company received approval of its reorganization plan in mid-June from the U.S. Bankruptcy Court for the District of Delaware.

“I am extremely pleased that Metal Management has emerged from Chapter 11 so quickly,” says Albert A. Cozzi chairman and CEO of the company. “We have come out with one of the strongest balance sheets in the industry.  We appreciate the confidence that our scrap metal suppliers have shown in us, which has allowed us to maintain our market share, and we are anxious to move forward and grow our business profitably in each of the major markets we operate facilities in.”

Metal Management is one of the largest metals recyclers in the U.S., with more than 40 recycling facilities in 14 states and estimated annual revenues of approximately $800 million.

“We can now continue our operational acceleration efforts to be the low cost processor with a leading market share in every market we serve,” remarks Michael W. Tryon, president and chief operating officer of the company. “Emerging from Chapter 11 allows us to grow profitably.”

As part of its reorganization, Metal Management has entered into a new credit agreement with its existing senior lenders providing the company with $150 million of borrowing capacity.  The senior credit agreement matures in June 2003.  As part of the plan, the Company also restructured its $30 million senior secured notes due May 2004.  Substantially all other debt of the company will be converted to equity of reorganized Metal Management.