Slater Steel Restructuring Update

Slater Steel Inc. announced that it has made significant progress towards developing a business plan for the restructuring or going concern sale of its Hamilton Specialty Bar, Atlas Stainless Steels, Sorel Forge and, possibly, Slater Lemont divisions.

The company said that its ability to implement the business plan will be contingent on a number of factors, including achieving significant labor savings at Hamilton Specialty Bar and Atlas Stainless Steels by the end of this month, the reduction of other targeted expenses, and finalization of arrangements with potential investors and/or buyers.

The business plan does not presently include Slater's operations at Fort Wayne Specialty Alloys or Atlas Specialty Steels, which comprise the company's stainless steel bar business.

Due to financial difficulties, the company expects its Slater Steels Corp. subsidiary to file for bankruptcy protection by the first quarter of next year in order to idle the entire Fort Wayne Specialty Alloys facility in Fort Wayne, Ind.

The company earlier announced it would sharply reduce its stainless steel bar business and several operations at Fort Wayne would be temporarily shut down by the end of this year. Additionally, the company announced that its entire Atlas Specialty Steels facility in Welland, Ontario is in the process of being temporarily idled.

The company also announced that it has insufficient liquidity to fund working capital at Slater Lemont. Consequently, most of the employees at the facility will be laid off this week. Slated also said that it expected that Slater Lemont Corp. would seek U.S. Bankruptcy Court approval to idle its facility, pending a possible sale of such assets or its inclusion in Slater's business plan.