Thursday, May 19, 2016
By Kalea Hall
YOUNGSTOWN
The holding company for Commercial Metal Forming on Logan Avenue recently filed voluntary petitions for Chapter 11 bankruptcy.
The bankruptcy is not expected to impact business at Commercial.
“This has nothing to do with Commercial other than the fact that we are a part of the parent company,” said Bob Messaros, president and chief executive officer for Commercial Metal Forming. “We are business as usual.”
The parent company, Constellation Enterprises LLC, filed its bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Monday.
The company said in a press release the bankruptcy filing is to restructure its debt obligations.
In its bankruptcy filing, the company claims to have 50 to 99 creditors, assets of $1,000,001 to $10 million and liabilities of $100,000,001 to $500 million.
Constellation is the parent company of Commercial, Jorgensen Forge Corp. of Washington, Columbus Castings in Columbus and Zero Manufacturing of Utah.
For the Commercial, Jorgensen and Zero to operate as usual, a group, including the holders of Constellation’s senior secured notes, will provide debtor-in-possession financing. Also, the holders provided a bid to purchase the assets of Commercial, Jorgensen and Zero.
Constellation also received a letter of intent from a party interested in acquiring Columbus Castings.
The weakness in oil and gas and industrial manufacturing sectors and “significant operational issues at Columbus” put added stress on the company, according to the release.
Commercial Metal Forming, which has three locations – with its largest in Youngstown – also has seen an impact in business from the downtown in oil and gas.
Commercial supplies tank heads and tank accessories for 30 industries, five of which are connected to the energy industry.
The Youngstown Commercial plant has 106 employees. More than 50 of them are represented by the United Steel Workers Local 2332-1.
“We have been in dialogue with them,” Messaros said. “It’s a great relationship.”