MH Metals, a California steel distributor based in Los Angeles, has filed for Chapter 7 under the US Bankruptcy Code.
Chapter 7 bankruptcy does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds to pay pending creditors in accordance with the provisions of the Bankruptcy Code. This leads to permanent closure of the business.
MH Metals was established in April 2000 as a metal service center specializing in diverse steel products to support Southern California regional customers.