Struggling Steel Company Allowed To Pay Foreign Debts

Law360, New York (January 30, 2006, 12:00 AM EST) -- Steel producer Galvax, forced into Chapter 11 bankruptcy protection after defaulting on an $84 million loan, has been given approval to pay off debts owed to foreign creditors.

A bankruptcy court judge ruled that the company could pay off $10.5 million in debts owed to foreign vendors, service providers and governments.

Galvex filed the motion worried that foreign creditors would take legal action against the company and its overseas affiliates if the debts were not paid on time.

The company said that most of the debt,...
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