National Steel Corp. filed for Chapter 11 bankruptcy, the latest U.S. steel company to seek protection from creditors as it fights depressed prices, a weak economy and record levels of steel imports.
The filing, which was made in the U.S. Bankruptcy Court for the Northern District of Illinois, comes a day after President George W. Bush imposed tariffs and quotas on a wide range of steel imports in a bid to prop up the ailing industry.
National Steel said it had an agreement in principle for up to $450 million of debtor-in-possession financing with its existing senior bank group, subject to court approval.
The Mishawaka, Ind.-based company said the restructuring would have no affect on its obligations to customers.
The company said that with the new financing and protections provided by the bankruptcy code, it would be able to pay vendors for all goods and services provided after the filing date.
``Daily operations at our facilities will continue as usual, and our employees will continue to be paid and receive benefits without interruption,'' said Hisasi Tanaka, National Steel's chairman and CEO.
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