Slater Steel, a mini mill producer of specialty steel products, has filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) inCanada together with some of its US and Canadian subsidiaries.
Slater and certain of its Canadian subsidiaries have also filed for protection under Section 304 of the US Bankruptcy Code and Slater’s US subsidiaries have filed for protection in the US under Chapter 11 of the US Bankruptcy Code.
The concurrent filings will allow Slater to develop a restructuring plan to address its current debt, capital and cost structures.
In conjunction with the filing, the Company has secured a Cdn $45.0 million debtor-in-possession (DIP) financing. The Company anticipates that the DIP financing will be sufficient to fund its operations during the restructuring process.
The Company said that its operations would not be affected by the filings and that it would continue to operate in the normal course of business.
The North American specialty steel industry has been negatively impacted by the recent economic slowdown that has resulted in weak demand and soft pricing. And the stainless steel bar market has experienced one of the most severe downturns ever due to the severe contraction of the capital goods sector, according to the company.
The Corporation’s mini mills are located in Fort Wayne, Indiana, Lemont, Illinois, Hamilton and Welland, Ontario and Sorel-Tracy, Quebec.