Service Centers
April 14, 2015
Lee Steel Files for Chapter 11 Bankruptcy
Written by Sandy Williams
Lee Steel Corp, a privately owned steel service center in Novi, Michigan, filed for Chapter 11 bankruptcy protection on April 13, 2015. In a court filing the company cited “financial difficulties resulting from the present severe collapse in steel prices.” The company listed debt of approximately$10.8 million.
The vast majority of the debt owed is to steel suppliers, both domestic and foreign. Based on a quick analysis of the filing, approximately $10.1 million is owed to foreign, Canadian and U.S. steel suppliers.
Lee Steel owes $5.2 million to foreign steel suppliers with Tata Steel (UK & Scotland) leading the pack with $3.1 million owed (combined).
Canadian supplier Essar Steel Algoma is owed $2.5 million. Just about all of the U.S. steel mills have some exposure but, combined, the U.S. producing mills are owed $2.4 million.
Lee Steel, founded in 1947, provides a full range of flat rolled steel, including hot rolled, cold rolled and coated products. In September 2014 the company finished installing its new EPS Eco-Pickling Coil Line at their Metro Detroit facility in Romulus, Mich. The facility also features twin state-of-the-art 72″ Braner-Loopco Turret Head slitting lines with computer-controlled Shape-Correction Cluster Levelers.
The Grand Rapids location features a Herr-Voss strand Extensioner slitter and Red Bud Industries Multi-Blanking Line with Stretcher-Leveler.
