By Paul Ploumis 05 Aug 2015 Last updated at 08:33:28 GMT
MADISON (Scrap Monster): Loeb-Lorman Metals Inc.- a family owned scrap metal company in Watertown has filed for receivership. According to sources, a court-appointed receiver will now look to sell company’s assets.
The receiver, attorney Ronald M. Carlson expressed hope that he would be able to sell the company in one piece. However, Attorney Timothy F. Nixon, who represents the company, stated that the company is already into discussions with potential buyers for a possible sale of its assets along with its staff. The facility employs nearly 75 people.
According to the company, falling iron ore prices have impacted their business very badly. As per statistics, iron ore prices have plunged by more than 60% over the past eighteen months.
The petition states that the company has listed assets worth $18.2 million and net liabilities amounting to $17.2 million. However, it admits that the fair value of the listed assets might be much lesser than the debts. JP Morgan Chase Bank is the single largest creditor to whom the company owns $10.2 million. The bank holds all of the company’s assets as collateral against credit.
The court-appointed receiver sees very remote chances of the company being purchased as a business in one piece. The chances of the new buyer hiring the existing employees also look remote. Consequently, the receiver has filed a plant-closing notice with state authorities. As per the notice, the company’s all four facilities- Watertown HQ, Fort Atkinson, Reedsburg and Argo, Ind would be closed effective September 18th.
The case is pending in Jefferson County Circuit Court.
According to company website, Loeb-Lorman Metals, Inc. is one of the Midwest's major scrap metal processing companies with locations in Wisconsin and Indiana. Loeb-Lorman Metals, Inc. purchases scrap metals from industries, peddlers and individuals. The metals are prepared for use as melt stock for foundries and mills.