LB Steel files Chapter 11 bankruptcy with court

By Mark Reccek

Bethlehem, Pa., Oct. 23 – LB Steel LLC filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Illinois on Oct. 18, according to a Thursday press release.

According to the court filing, the company lists $10 million to $50 million of assets and $50 million to $100 million of liabilities.

The filing also indicates the two largest unsecured creditors are Walsh Construction Co. with a claim of $19.19 million and Evraz Claymont Steel, Inc. with a claim of $1.53 million.

The release said the company continues business as usual and expects to serve its customers with the highest quality of service, provide employee wages, health care coverage, vacation and other benefits, without interruption; and pay suppliers for goods and services received during the reorganization process.

The Chapter 11 filing comes on the heels of a decade-long legal dispute with Walsh Construction, the release noted.

“As a result of expending significant amounts to defend the Walsh litigation and the threat of Walsh enforcing its judgment, LB Steel determined that it was unable to continue its business operations without filing for relief under Chapter 11 of the Bankruptcy Code,” LB Steel president Michael Goich said. “LB Steel’s management has concluded that the most effective way to preserve our longstanding customer and vendor relationships, continue shipments to our customers and maintain the company’s working capital to meet its obligations is to sell the company’s assets as a going concern.”

According to the release, the company is in discussions with several parties regarding the sale of its business and “intends to use the Chapter 11 process to conduct an orderly marketing and a going concern sale of substantially all of its business assets pursuant to section 363 of the Bankruptcy Code.”

LB Steel has retained Patrick O’Malley of Development Specialists, Inc. as chief restructuring officer and the company is being advised by Perkins Coie LLP, the release also said.

LB Steel is a Harvey, Ill.-based producer of strip plate mills. The Chapter 11 case number is 15-35358.

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