New Delaware Chapter 11 Filings – Keystone Tube Company, LLC, A.M. Castle & Co. et al.

Keystone Tube Company, LLC and four affiliates, including A.M. Castle & Co. (OTC: CASL), HY-Alloy Steels Company, Keystone Service, Inc. and Total Plastics, Inc., have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-11330).  The debtors are a specialty metals distribution company.  According to the first day declaration, the filing appears to be attributable to the debtors being over-leveraged.  The petition for Keystone Tube Company, LLC indicates $100-$500 million in both assets and liabilities.  The debtors have filed both a plan and a disclosure statement and a motion seeking a combined hearing on both.  According to the debtors, the proposed plan is supported by 100% in principal amount of the holders of their first lien secured claims,  92% in principal amount of second lien secured claims and 61% in principal amount of third lien claims.  The debtors have also filed a motion to assume a restructuring support agreement and a motion to assume an exit facility commitment letter.  The cases have been assigned to the Honorable Laure Selber Silverstein.  The docket is available through KCC. The companies have issued a press release regarding their restructuring efforts.

Contact Norman L. Pernick and Nicholas J. Brannick for more information.