Gulf Chemical & Metallurgical files bankruptcy, looks to sell assets

By Caroline Salls

Pittsburgh, June 14 – Gulf Chemical & Metallurgical Corp. and its Bear Metallurgical Co. subsidiary filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the Western District of Pennsylvania.

According to a statement filed with the court by chief executive officer Eric Caridroit, Gulf and Bear filed bankruptcy with a goal of achieving going concern sales or a combined sale of their businesses.

If a sale cannot be completed, Caridroit said one or both of the debtors may reorganize their business through a Chapter 11 plan.

Caridroit said “the debtors have faced a number of challenges over the past few years, ultimately leading to the filing of these Chapter 11 cases,” including a steady decline in the market prices of molybdenum and vanadium and the decline of nickel prices.

“As a result, Gulf has been unprofitable for years,” Caridroit said.

In addition, the CEO said the company has faced environmental challenges that have contributed to its current situation.

In conjunction with the bankruptcy filing, the company obtained a commitment for $12 million in debtor-in-possession financing from Comilog Holding.

The facility will mature on the earliest of Dec. 31, 2016, the occurrence of a termination event and the entry of an order approving the sale of substantially all of the debtors’ assets.

Interest will accrue at a rate of 8½%.

Gulf is seeking interim access to $3 million of the financing.

According to court documents, Gulf has $100 million to $500 million in both assets and debt.

The company did not list any unsecured creditors with claims of $1 million or more.

The company is represented by McDonald Hopkins LLC and Cohen & Grigsby, PC. Stoneleigh Group Holdings LLC is the financial adviser.

Gulf is a Freeport, Texas-based subsidiary of Eramet, a Paris-based mining and metallurgical global producer of alloying metals. Gulf’s Chapter 11 case number is 16-22192.

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