Oklahoma's only steel mill is set to emerge from bankruptcy protection by the middle of next month. The company, which had been hit by soaring energy costs and declining steel prices, had slipped into Chapter 11 protection about eight months ago. The company was one of more than a dozen domestic steel companies that were forced into bankruptcy protection.
According to Steve Johnson, vice president of Sheffield, the company was able to have their reorganization plan signed July 26. According to the agreement, the plan writes off a majority of the company's bonded debt, cancels existing stock and sets the stage for $6 million in new financing.
While in protection, the company has continued to operate. “Things have been improving through the whole process,” Johnson adds. “We will have shed $104 million in debt.
Johnson also noted that when the company first filed for protection the steel company was hit by energy costs that soared to $8 million a year.
Financing will be provided by CIT, as well as a group of local banks and government entitities.
Sheffield had been operating three crews, five days a week at its rolling mill in Sand Springs. Now they are operating four crews, seven days a week, Johnson said. The melting operation, the backbone of Sheffield's operations -- where scrap is readied for reuse -- has increased operations from four to five days a week, Johnson said.
Sheffield Steel, located in Sand Spring, Okla., is a mini-mill producer of hot rolled steel bar products, concrete reinforcing bar, fabricated products, including fabricated and epoxy-coated rebar ,fence posts, railroad track spikes, and various types of billets..