Ivaco under bankruptcy protection

Ivaco under bankruptcy protection

North America's leading steelmaker Ivaco Inc. went under bankruptcy protection due to financial difficulties. The company stated that this decision was a result of C$13 million loss recorded in the second quarter of 2003. The fiscal deficit is in relation with Canadian Dollar's appreciation against US Dollar. The company's around 70% of the revenues are denominated in US Dollar. Also, Ivaco's some wire rod products has been filed by US safeguard duty. Under these circumstances, Ivaco plans to restructure under Canada's Companies' Creditors Arrangement Act. Furthermore, the company will close its US operations.