Irvine, California-based materials science company MMFX Technologies Corporation, the parent company, and its subsidiaries, MMFX Steel Corporation of America and Fasteel Corporation, filed voluntary petitions for relief Tuesday under Chapter 11 of the United States Bankruptcy Code. The Board of Directors of MMFX Technologies Corporation has determined that Chapter 11 reorganization is in the best interest of MMFX Technologies Corporation and its subsidiaries, as well as all of its stakeholders.
Although MMFX saw record sales of its proprietary concrete-reinforcing steel products in November and is making significant strides in marketplace acceptance, Tuesday's announcement is attributed to the unresolved primary debt obligations origination from a Welland, Ontario steel mill acquisition in 2008.
"In view of this situation, we have determined that Chapter 11 reorganization is the most efficient and effective way to restructure MMFX Technologies Corporation and its subsidiaries, and to position the companies for long-term financial stability," said Charles Gathers, Chairman and Chief Executive Officer. "We do not anticipate any delays or interruptions in serving our customers' needs, and we intend to continue sales, production and distribution of our steel products in the ordinary course of business. We appreciate the ongoing loyalty and contributions of our employees and the continued support of our suppliers and customers," said Mr. Gathers.