Bayou Steel to file stand-alone reorganization plan after failing to attract buyer

By Carlise Newman

Chicago, Nov. 11 - Bayou Steel Corp. said it will file a stand-alone plan of reorganization in bankruptcy court after failing to attract a buyer for its assets.

Previously Bayou had looked at various options including developing a stand-alone business plan and marketing the company to new investors or purchasers. No acceptable cash proposals were received, Bayou said.

Bayou's board of directors decided that a stand-alone plan of reorganization providing an internal restructuring of its business operations and a revised debt structure will give creditors the most value.

President Jerry Pitts said he is hopeful that the company will be able to emerge from Chapter 11 by early February 2004.

The Bayou management team developed a long-term business plan over the last six months. That business plan will be the foundation for Bayou's plan of reorganization.

The LaPlace, La.-based steel company filed for Chapter 11 on Jan. 22.

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