Canadian Slater Steel under bankruptcy protection

Canadian Slater Steel under bankruptcy protection

Canadian steel maker Slater Steel Inc. went under bankruptcy protection and has started to look for a buyer. The company stated that, this decision was a result of poor financial performance recorded in the first quarter of 2003 which is C$8.8 million in terms of loss compared to C$560'000 income posted last year, and flat sales, despite the endeavours to refocus its business and lower the costs as the company failed to meet the conditions of its proposed financing in time. At this stage Slater Steel plans to restructure under Canada's Companies' Creditors Arrangement Act, in parallel to the Chapter 11 protection in the US. Slater Steel said that it has secured C$45 million in debtor-in-possession financing from its lenders to fund operations while restructuring. According to experts, Slater Steel's financial problems are related to the slow demand from key stainless steel customers in specific industries in need for higher-value alloys for corrosive and high-temperature environments. Slater Steel officials expressed that their case was an evidence for the need that the Canadian steel industry is in for a protection similar to that of the US. Slater Steel has operations in Quebec, Ontario, Fort Wayne Ind. and Lemont III.