Birmingham Steel files for bankruptcy
As per reports from Reuters, pursuant to the
Nucor takeover and the $615 mio definitive agreement, Birmingham Steel Corp now filed for bankruptcy on Monday. It has also filed for other motions like seeking financing to continue current operating levels until closing of the sale. There will be a hearing on Tuesday with regards to these motions.
The gain from
Nucor sale will retire the secured debts to lenders. Within the framework of the prearranged agreement, by the end of the year it is expected that
Nucor sale and settlement with all unsecured lenders will be completed. A Birmingham Steel representative expressed that the employees will be paid in the meantime.
John Correnti, the chairman and chief executive of Brimingham Steel stated that they expect to to continue operations during the bankruptcy process.