Scrap metal recycler Keywell files for Chapter 11 bankruptcy, sells assets

Chicago-headquartered scrap metal recycler Keywell LLC has filed for Chapter 11 bankruptcy along with entering into contract with stainless scrap processor Cronimet

CHICAGO (Scrap Monster) : Chicago-headquartered scrap metal recycler Keywell LLC has filed for Chapter 11 bankruptcy along with entering into contract with stainless scrap processor Cronimet for selling a major fraction of its assets. The court documents were filed Tuesday.

According to the court filing, Keywell has a huge liability of nearly $28 million unsecured creditors, the largest being California based SA Recycling with $1.322 million. The other key creditors as per the list are Indiana based Omnisource ($0.773 million), Atlanta based Schnitzer Steel ($0.529 million) and Baltimore based Terrapin Metals Recycling ($0.352 million).

Keywell’s business operations were largely impacted by the sharp fall in nickel prices. The sales volumes fell by nearly 28% during the first eight months of the year. Market participants were expecting the company to file for bankruptcy as early as July.

According to Keywell, the Chapter 11 filing was made as per buyer’s requirement. Meanwhile, its Falconer, New York, and Monroe, North Carolina, facilities will continue to operate at reduced capacities.

Keywell is an aerospace metals and specialty steel recycling business, operating since 1924.It had been a world-class supplier of scrap titanium, high temperature alloys and stainless steel.

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