Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, August 28, 1993 TAG: 9308280071
SECTION: BUSINESS PAGE: A6 EDITION: METRO
SOURCE: Associated Press
DATELINE: GREENSBORO, N.C. LENGTH: Short
Richard J. Puricelli, Carolina Steel president, said the company has until Sept. 13 to decide whether it will agree to petition for Chapter 11 protection under the U.S. bankruptcy code.
Carolina Steel operates a processing center at the Botetourt Industrial Park at Hollins, where it makes parts. The plant has about 90 employees.
Sadie Cox, human resources director for the company, said Friday she did not know what impact the action would have on the plant.
The company has struggled with heavy debt since its managers arranged a leveraged buyout in 1988. It owes about $90 million to five different bondholder groups, consisting of insurance and investment companies such as Lehman Brothers of New York.
The bondholders moved to bring the company's debt problems to a head Tuesday when they filed an involuntary bankruptcy petition against Carolina Steel in the U.S. bankruptcy court in New York. The company has 20 days to respond to that petition by either agreeing or disagreeing.
Carolina Steel also operates manufacturing plants and service centers in North Carolina, South Carolina and Kentucky.
It employs more than 1,100, including about 550 in Greensboro, where it has had its headquarters since its founding in 1919. It has annual sales of about $200 million.
Staff writer Mag Poff contributed to this story.
by CNB