Judge Clears Barzel Creditors To Vote On Ch. 11 Plan

Law360, New York (July 26, 2011, 5:19 PM EDT) -- A Delaware bankruptcy judge approved metal processor Barzel Industries Inc.'s Chapter 11 disclosure statement Tuesday, giving creditors until Aug. 29 to vote on a plan that contemplates paying two major noteholders after priority claims are paid out.

Burdened with $375 million in debt, Norwood, Mass.-based Barzel and seven affiliated debtors blamed a recession-triggered business slowdown for their September 2009 bankruptcy and sold off most of their assets to Chriscott USA Inc. for $75 million in November 2009.

"The recoveries expected to be available to the holders...
To view the full article, register now.