Aleris’ payment terms unlikely to improve in 2011, suppliers say
Dec 16, 2010 | 08:54 AM
| Sean Davidson
Any attempts by Aleris International Inc. to improve payment terms with scrap suppliers in 2011 will be shot down until market confidence improves, suppliers told AMM.
Still smarting from losses following the Beachwood, Ohio-based company's bankruptcy, suppliers categorically stated that they wouldn't entertain the proposition unless credit ratings on Aleris advised otherwise.
In a recent interview with AMM, Terrance J. Hogan, vice president and general manager of Aleris' aluminum recycling unit, said he was optimistic that Aleris would see a return to standard terms in the coming year and acknowledged decisions would be made on a case-by-case basis.
"We've seen terms extend and we would expect to see that continue as we get some history under our belt from an earnings standpoint and a quarterly performance standpoint. And we've certainly seen a dramatic improvement from cash on delivery, but it doesn't take much to see improvement from there—there's only one way to go," he said.....
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