Candlewood Partners is pleased to announce that it served as the exclusive financial advisor to Bayou Steel Group (“BSG” or the “Company”) in its Chapter 11 restructuring and subsequent $28 million asset sale to Liberty Steel Group.
Bayou Steel Group is a North American steel manufacturing plant focused on the production of structural steel and merchant bar products to primarily serve the Midwest and Eastern construction markets.
Due to extenuating circumstances, BSG encountered a material liquidity shortfall and faced default on its senior revolving credit and term loan facilities in September 2019. Bayou Steel sought protection via filing for Chapter 11. During the bankruptcy period, the company idled production activities and focused on liquidating its on-hand inventory for the benefit of its secured and unsecured creditors.
Candlewood Partners served as financial advisor during the wind-down period and ran a competitive marketing process for the company’s assets to be sold via a Section 363 transaction. The assets marketed for sale consisted of two steel mini mills and two distribution warehouses, which, taken together, included over 621 acres of land and over 1.3 million square feet of properties.
In less than 45 days after the auction, the company’s assets were successfully sold in a single transaction to Liberty Steel, a strategic buyer whose plans include a restart of steelmaking operations in 2021.
“In a fast-moving process that required consensus from multiple constituents, Candlewood executed a complex transaction that provides Bayou Steel with the ownership and strategic resources to navigate short-term challenges facing the industry and positions the business for future success. Candlewood is actively seeking similar advisory opportunities to assist companies facing significant operational and financial hurdles” said Glenn Pollack, Founder and Managing Director of Candlewood Partners.
About Liberty Steel Group
Liberty Steel is part of Liberty House Group, an industrial metals company founded in the United Kingdom in 1992. It is a subsidiary of the international mining and manufacturing conglomerate GFG Alliance. Liberty House focuses on ferrous and non-ferrous metal trading, metals recycling, steel and aluminum production, and engineering products and services.
About Candlewood Partners
Candlewood Partners is a Cleveland and New York-based boutique investment bank and advisory firm. Since 2001, Candlewood has supported the needs of middle market companies worldwide, successfully tackling complex engagements that others cannot.