Bayou Steel – Baton Rouge, LA

The Case

Neligan LLP represented a Louisiana-based steel company with manufacturing facilities along the Mississippi River in its Chapter 11.   The Firm helped Bayou Steel restructure its operations and address over $200 million dollars of secured bank debt, bond debt, trade and tort claims. Working closely with the board of directors, senior management, and the company’s financial advisors, Neligan LLP lawyers successfully reorganized the company, which emerged from Chapter 11 with enhanced liquidity and elimination of unprofitable contracts. By eliminating most of its pre-bankruptcy debt service through the plan of reorganization, the company’s cash flow improved dramatically and the company’s value increased substantially in the year following emergence.  Bayou Steel was later sold for $475 million to ArcelorMittal, one of the largest steel producers in the world.