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Keywell files for Chapter 11 bankruptcy

Sep 25, 2013 | 06:28 PM | Rey Mashayekhi

Tags  Keywell, Chapter 11, bankruptcy, Cronimet, SA Recycling, Ferrous Processing & Trading, OmniSource, Greenville Metals Joseph Freedman Co.


NEW YORK — Specialty steel recycler Keywell LLC filed for Chapter 11 bankruptcy protection Sept. 24.

Chicago-based Keywell filed the documents with the U.S. Bankruptcy Court in northern Illinois, one day after announcing it had agreed to sell "a substantial portion" of its assets to Aliquippa, Pa.-based processor Cronimet Corp. The deal will see Cronimet acquire Keywell’s aerospace metals businesses in Falconer, N.Y., and Monroe, N.C., as well as most of the assets and equipment at its West Mifflin, Pa., facility (amm.com, Sept. 23).

Keywell’s bankruptcy filing features a list of more than 1,000 creditors, including many metals recyclers and processors. The filing also includes a list of Keywell’s 20 largest creditors, which are owed a collective $9.99 million. The company holding the largest claim is Orange, Calif.-based SA Recycling LLC, which Keywell is listed as being owed more than $1.3 million. The second-largest claim belongs to Cleveland-based Ferrous Processing & Trading Co., which is owed more than $1.2 million.

Other companies owed large sums by Keywell, according to the filing, include the stainless steel and alloy division of Fort Wayne, Ind.-based OmniSource Corp. ($772,740); Transfer, Pa.-based Greenville Metals Inc. ($761,964); Springfield, Mass.-based Joseph Freedman Co. ($706,812); Kalamazoo, Mich.-based Schupan & Sons Inc. ($599,364); Atlanta-based Schnitzer Southeast LLC ($528,747); Dayton, Ohio-based Franklin Iron & Metal Corp. ($416,569); Hamilton, Ontario-based AIM Ontario ($411,660); and Irving, Texas-based CMC Recycling ($385,714).

Keywell’s bankruptcy and impending sale to Cronimet concludes a tumultuous several months for the company, which faced increasing financial difficulties in the midst of falling scrap demand. In July, Keywell suspended payments at all of its yards for scrap deliveries received on or before June 26, and temporarily closed processing facilities in Detroit, Atlanta and Chicago (amm.com, July 3). That was followed by the temporary closure of the company’s Carson, Calif., facility (amm.com, Aug. 6) and the impending Oct. 24 shutdown of its Frewsburg, N.Y., plant (amm.com, Sept. 3).




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