Concord Steel, Inc. Files Voluntary Chapter 11 Petition
Stamford Industrial Group, Inc. (Stamford, CT) announced that its wholly-owned subsidiary, Concord Steel, Inc. (Youngstown, OH), which constitutes substantially all of the company’s assets, filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Ohio. SIG was not included in Concord’s filing.
Al Weggeman, the company’s Chief Executive Officer, said, “Over the past year, Concord has continued to be adversely affected by the steep drop off in purchasing for the global infrastructure, construction, and residential markets as a result of the global financial crisis. Recently, some of Concord’s customers have unexpectedly announced the closing or suspending of operations at their fabrication facilities.?
Weggeman continued, ?Throughout 2008 and 2009 we have been taking broad-based cost cutting measures, including a 75 percent reduction in our workforce, consolidating operations as well as cutting salaries, and since the first quarter of 2009 have attempted to address and negotiate modifications to Concord’s credit agreement to account for the reduction in demand from its customers and the unprecedented market changes. Although we have begun to see some subtle but positive indicators within Concord’s markets, Concord has been unable to enter into a further amendment of its credit agreement to address its ability to continue to comply with the credit agreement on an ongoing basis and continue to borrow the funds needed to continue to operate. As a result, after careful consideration, it was determined that a Chapter 11 filing by Concord was a necessary and prudent step.”
Concord expects to file motions with the court seeking the continuation of operations, including requesting court approval to continue paying employee wages and salaries and providing employee benefits.
Concord Steel, Inc., a wholly-owned subsidiary of Stamford Industrial Group, acquired in October 2006, is a leading independent manufacturer of steel counter-weights and structural weldments that are incorporated into a variety of industrial equipment, including aerial work platforms, cranes, elevators and material handling equipment.
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