Bayou Steel closure, bankruptcy seem designed to duck pledges to workers, parish president, union [View all]

Bayou Steel closure, bankruptcy seem designed to duck pledges to workers, parish president, union say


The surprise closure of Bayou Steel Group in LaPlace this week seemed designed to duck the company's obligations to its workers, St. John the Baptist Parish President Natalie Robottom said Wednesday, as she and other officials began dealing with the fallout from the steel mill's sudden shuttering.

During a press conference in the St. John Parish Council chambers, Robottom and union representatives said they felt they had been misled by Bayou Steel's owners about its financial health and prospects, as well as about its pledges to the nearly 400 workers at the 40-year-old steel mill.

"We're disappointed for a company that has been in our parish this long, and there are employees, some of whom have worked there in excess of 30 years, who were caught off guard," said Robottom.

On Tuesday, the parent company of Bayou Steel Group filed for bankruptcy protection. In the filing signed by President and Chief Operating Officer Alton Davis, the company, which is controlled by a Connecticut private equity firm, said it had as much as $100 million in outstanding debts and less than $50,000 in assets.

Read more: https://www.nola.com/news/business/article_a06d9fce-e530-11e9-9c3c-4f5e0c4473f3.html

How can they only have $50,000 in assets? The buildings and equpment should have more value than that.