J. Michael Kirksey, chairman and CEO of the Texas-based steel service center, said despite reduction and asset rationalization efforts to improve profitability as well as the company's initiatives to sell non-core assets, the company was not able to overcome the difficulties of a troubled metals market, a recessionary manufacturing economy, and overall uncertainties in the marketplace. This filing is a necessary component of the Company's strategy to create a sustainable capital structure, increase its liquidity position and improve its profitability.
The company intends to continue its business operations without interruption during the Chapter 11 process.
The company stated that it had sufficient cash flow and cash reserves to fund ongoing operations.
The company announced plans to sell its specialty metals and aerospace businesses, integrate eight of its smaller facilities into larger ones, and suspend its quarterly cash dividend this past summer. The company owns 65 services centers throughout the United States.
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