Hussey Copper Files For Bankruptcy

Another American company has been hit hard by the financial crisis

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Pennsylvania based producer of copper products, Hussey Copper Ltd. and affiliates filed for bankruptcy in Delaware on September 27. The company blames the price of copper and plans to sell all assets but will continue to operate until agreements are made.

The company employs 536 workers in its Leetsdale, Pennsylvania plant and also has two plants in Kentucky.

Hussey Copper has been in business since 1848 and produces copper bus bar, wiring, sheet, and strips that are primarily used to conduct electricity in switchboards. It is one of the last copper-producing companies in the United states. In 2010, the copper company lost $3 million in net income. Its annual revenue dropped from $436 million in 2008 to $381 in 2010.

The company states the current economic condition as the reason for its difficulties, the result of which is more than $100 million in debt. After defaulting on loans, attempts to refinance its debt failed. The company owes several lenders including Wells Fargo, Bank of America, and BNC bank. The company will be selling its assets.

Metal Management Pitt Inc. is its largest creditor and about $9.1 claim against the copper company. Hussey plans to sell to KHC Acquisition LLC unless a higher bid is received.

Copper has fallen in price by 20% this year due to the recession and took a deep plunge on Thursday, September 22, making the following Friday its lowest point in over a year. The slow economy is said to have lowered demand for raw products, especially metals. This month, the price of copper has hit its lowest point in over a year. The decline in the demand for metal led the market for commodities to its lowest point in the last nine months.

Several metal companies made the list of Husseys 20 largest unsecured creditors. Metal is considered a barometer for the global economical health as a whole because of its many uses with building materials for a wide range of infrastructures.

Because the metal market can be used as a gauging device, Hussey Copper filing for bankruptcy is reflective of how the economy is faring. Bankruptcy allows both companies and individuals to to settle their debts an move on.

The economic climate has had an impact of individual citizens, too. Individuals filing for bankruptcy should consider hiring an El Paso bankruptcy lawyer in order to help navigate the legal waters, as the process can often be overwhelming and frustrating to go alone.

by: Davis Law

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