Magnatrax files for Bankruptcy Court
Canadian Onex Corp. filed a voluntary petition under Chapter 11 of the US Bankruptcy Court for its steel building and
fabrication subsidiary Magnatrax Corp. on May 12, 2003.
According to company statement, Magnatrax's financial problems depend on the high steel prices due to imposition of US import tariffs and a decrease in the
construction sector over the last three years.
Magnatrax's total liabilities amount to $326 million and the company listed assets of $207 million.
Onex established the Magnatrax in 1999 and since then it has invested $172 million to the company.
Onex reported a net loss of CAD35 million (approx.$25 million) for the first quarter of 2003 compared with a net profit recorded of CAD22 million (approx.$15 million) in the same period of last year.
Furthermore, Magnatrax posted its revenues as $135 million in the first quarter of 2003 compared to $139 million revenues in the same period of 2002.