Bankrupt Aluminum Recycler Announces Shutdown of Wisconsin Plant

SEATTLE (Scrap Monster): Real Alloy Holding Inc.,-a subsidiary of California-based Real Industry Inc. has announced its decision to close doors of its Mt. Pleasant, Wisconsin facility. The move is considered to be part of company’s efforts to improve operational efficiency. The closure will result in better utilization of available production capacity in the neighboring Indiana and Michigan facilities. It must be noted that the Mt. Pleasant facility was acquired from Beck Aluminum in 2016.

The company, which runs 15 sites across the US, had filed for Chapter 11 bankruptcy in November last year. In its filing to the U.S. Bankruptcy Court in Delaware, Real Alloy had stated that the filing follows tight liquidity crisis. Further, it had stated that operations at all existing facilities will continue as usual. This is the first facility to announce closure after that.

Earlier in January this year, the company press release had confirmed receipt of final approval for its $265 million Debtor-In-Possession (DIP) facility by the U.S. Bankruptcy Court for the District of Delaware. The DIP financing, provided by the Bank of America and certain bondholders of the company is expected to help the company to allow uninterrupted operations throughout the restructuring process. It also authorizes the company to initiate payments to employees, suppliers and other service providers.

ALSO READ: Idled Kentucky UBC Recycling Facility Gets New Life

The press release also highlighted the significant progress made by the company since filing of Chapter 11. The company has negotiated contracts for material supply in 2018 from a handful of its longstanding customers, including multinational automobile manufacturers and major aluminum producers. In addition, the company has received strong support from its customers and vendors.

Terry Hogan, president of Real Alloy hoped to complete the sale process in the near future. The company is well positioned for strong performance, by concentrating on its core operations in North America and Europe.