Aluminum extruding giant Indalex files for bankruptcy

Indalex Aluminum Solutions Group--made up of aluminum extruder Indalex and its four affiliates--filed for Chapter 11 bankruptcy protection on Friday but it is unclear whether the firm will reorganize, seek a buyer or liquidate. The Lincolnshire, Ill.-based supplier has operations in the U.S., Canada and China. A Reuters report says the group listed assets of between $100 million to $500 million and liabilities of between $100 million to $500 million. The company's biggest unsecured creditors are Alcoa which it owes $6 million and Rio Tinto Alcan which it owes $5 million. Attempts to contact executives were unsuccessful this morning but the bankruptcy protection announcement came as little surprise to the depressed extrusion market that has been plagued for many years with excess supply. Also, Indalex announced in February that it already had defaulted on a $11.4-million interest payment on its $200 million, 11.5% second priority senior secured notes, according to a filing with the U.S. Securities and Exchange Commission. However, a report in the American Metals Market subscription newsletter reiterates that the North American extrusion industry has experienced a profound downturn in recent months due to weak market demand, particularly in the transportation and residential building and construction end-user markets. In SEC filings, Indalex recently reported aluminum extrusion volume was off 40% since the market's peak in 2006, forcing it to shut several plants earlier this year. source：www.purchasing.com