03 DECEMBER 2013Platts
Bankruptcy of aluminum processor/foundry hits Wilmington Iron, Metaldyne
Edited by : AL CIRCLE
2 min read
Wilmington Iron and Metal and Metaldyne Bluffton were the largest unsecured creditors in the bankruptcy filing of US recycler Global Scrap Management along with its aluminum foundry division Altimet, which filed for Chapter 11 protection November 26 in US Bankruptcy Court, Southern District of Ohio.
Headquartered in Batavia, Ohio, Global Scrap Management started in 2003 as an aluminum brokerage firm and later opened a scrap processing facility in 2008, according to its website. It opened its Altimet secondary aluminum smelter in 2011.
Court documents filed by GSM list an outstanding claim amount of $339,838 for Wilmington, Ohio-based supplier Wilmington Iron and Metal and $245,619 for Metaldyne Bluffton of Bluffton, Indiana. The list of creditors holding the 20 largest unsecured claims also included metals-related creditors M & M Metals of Chicago, owed $168,460; Shapiro Metals of St. Louis, $149,846; Anchor Harvey of Freeport, Illinois, $128,351; Combined Metal of Toronto, $127,592; Byer Steel of Cincinnati, $94,825; Midwest Iron and Metal of Kenner, Louisiana, $89,161; and Wimco metals of Pittsburgh, $88,397.
GSM's court documents revealed $1.96 million in assets and $4.35 million in liabilities. It listed the estimated number of creditors in a range of 50-99. The company said in its petition that it estimates that funds will be available for distribution to unsecured creditors.
The aluminum processing company cited in a court filing "substantial liquidity constraints because of losses sustained in 2011 and 2012 in its purchases and processing of aluminum scrap for its own accounts." The company said it discontinued that practice but became cash strapped due to losses sustained at that time, and is in need of immediate access to its cash collateral.
An expedited hearing has been set by the court for Tuesday. Chris Hamm, the company's president, could not be reached for comment.
Headquartered in Batavia, Ohio, Global Scrap Management started in 2003 as an aluminum brokerage firm and later opened a scrap processing facility in 2008, according to its website. It opened its Altimet secondary aluminum smelter in 2011.
Court documents filed by GSM list an outstanding claim amount of $339,838 for Wilmington, Ohio-based supplier Wilmington Iron and Metal and $245,619 for Metaldyne Bluffton of Bluffton, Indiana. The list of creditors holding the 20 largest unsecured claims also included metals-related creditors M & M Metals of Chicago, owed $168,460; Shapiro Metals of St. Louis, $149,846; Anchor Harvey of Freeport, Illinois, $128,351; Combined Metal of Toronto, $127,592; Byer Steel of Cincinnati, $94,825; Midwest Iron and Metal of Kenner, Louisiana, $89,161; and Wimco metals of Pittsburgh, $88,397.
GSM's court documents revealed $1.96 million in assets and $4.35 million in liabilities. It listed the estimated number of creditors in a range of 50-99. The company said in its petition that it estimates that funds will be available for distribution to unsecured creditors.
The aluminum processing company cited in a court filing "substantial liquidity constraints because of losses sustained in 2011 and 2012 in its purchases and processing of aluminum scrap for its own accounts." The company said it discontinued that practice but became cash strapped due to losses sustained at that time, and is in need of immediate access to its cash collateral.
An expedited hearing has been set by the court for Tuesday. Chris Hamm, the company's president, could not be reached for comment.
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