The Concord Steel subsidiary of Stamford Industrial Group Inc. declared bankruptcy, and SIG informed the Securities and Exchange Commission it would suspend normal filings such as quarterly reports as it restructures under Chapter 11 protection from creditors.
Warren, Ohio-based Concord Steel makes counterweights for use in elevators, cranes and other industrial equipment. In April, Concord Steel was awarded the contract to supply counterweights for elevators in the planned Freedom Tower at the World Trade Center site in lower Manhattan.
SIG, which has its main office at One Landmark Square in Stamford, acquired Concord Steel in 2006. CEO Al Weggeman said Concord Steel has cut 75 percent of its work force in the past 18 months, reportedly idling about 300 workers. In the second quarter, the company lost $44 million on just $12 million in revenue, less than a third of its level a year earlier.
“Although we have begun to see some subtle but positive indicators within Concord”™s markets, Concord has been unable to enter into a further amendment of its credit agreement to address its ability to continue to comply with the credit agreement on an ongoing basis and continue to borrow the funds needed to continue to operate,” Weggeman said.
