After closing down its facilities in Youngstown, OH and Indianapolis IN, Cold Metal Products has announced that it now intends to file for Chapter 11 bankruptcy protection.
The filing covers the company’s US assets only and does not affect Cold Metal facilities in Hamilton, Ontario, and in Montreal, Quebec in Canada.
But these actions do not mean that Cold Metal Products is going out of business, according to company President and CEO Raymond P. Torok.
‘We have received a commitment for up to $48 million in post-petition financing from our lending group that provides the needed liquidity to fund our working capital requirements. We are working on a restructuring plan that allows Cold Metal to emerge as a strong, competitive and profitable company,’ he said.
Cold Metal joins a host of steel companies that have filed for Chapter 11 in the past several years. Because of its age and history, Cold Metal is facing similar problems to those afflicting large steel companies such as Bethlehem Steel, National Steel and LTV. These include burdensome costs, known as legacy liabilities, and commitments for pension and retiree health care benefits.