Sheffield Steel Corp., Sand Springs, Okla., has received suitable financing and reached agreement with creditors to allow it to emerge from its Chapter 11 bankruptcy status.
The company and its two subsidiaries, Wadell’s Rebar Fabricators and Wellington Industries, have arranged for $30 million in new bonds and an additional $35 million line of credit provided by CIT Group Inc., New York.
“We are all looking forward to our future as a strong, competitive company,” says Sheffield Steel Corp. president and CEO James P. Nolan. “Recent legislation by Congress will attempt to control the illegal dumping of imported steel, and energy costs have stabilized considerably,” he adds.
“Sheffield was burdened with significant debt at a time when energy costs spiked, steel imports surged and the economy slumped,” says Nolan of the Oklahoma electric arc furnace operation.
The Sheffield mini-mill makes special bar quality and other steel hot-rolled bar products plus rebar. Other facilities owned by the company make fabricated products such as fence posts and railroad track spikes.
In addition to its 600,000 tons-per-year mini-mill in Oklahoma, the company operates a rolling mill in Joliet, Ill., two fabrication shops in the Kansas City area and a railroad spike production facility in Oklahoma. Sheffield Steel Corp. also owns a small railway that runs between Sand Springs and Tulsa, Okla.