Georgetown Steel Files for Chapter 11 Bankruptcy

Georgetown Steel followed the well-trodden path of many other American steel producers, filing for chapter 11 bankruptcy today.

Reasons for Georgetown Steel’s demise included the increased cost of natural gas and scrap metal, leading to higher costs which the company could not pass on to customers. Increased competition from cheap and subsidised steel from overseas also played a role.

Georgetown Steel looked at various options including the sale of the business before filing for bankruptcy, but most broke down after unions rejected a 10% pay cut.

Midcoast Industries bought Georgetown Steel in July 2002 for $53 million from a bankruptcy auction. Chairman Daniel Thorne does not hold out much hope for the re-opening of the plant.

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