PTC Alliance Corp. d/b/a Pittsburgh Tube Company (“Pittsburgh Tube”) and its 6 affiliates who also filed bankruptcy on October 1, 2009 (the “Debtors”) have filed a consolidated list of the 30 largest unsecured creditors (the “Top Unsecured Creditor List”). The total of claims of the 30 top unsecured creditors is substantial, exceeding $3.9 million. All of the top 30 unsecured creditors are listed as trade creditors. The vast majority of the top unsecured creditors are material providers and subcontractors.
With no essential supplier or other motion for payment of any pre-petition supplier claims, a first day motion to restrict exercise of reclamation and 503(b)(9) rights and a planned 363 sale to an insider, this is shaping up to be a bloody ugly bankruptcy from a supplier perspective.
The Trade Debt Picture is a Blackout
Beyond the Top Unsecured Creditor List the information in the Debtors’ initial filings on their trade debt situation is practically non-existent. The Debtors’ petitions and the first day motions are supported by the declaration of Thomas W. Crowley, Chief Financial Officer (the “Crowley Declaration”). The Crowley Declaration includes the following recognition of the significance of the trade debt claims:
The Debtors receive a high volume of goods each day in the ordinary course of their businesses. The Debtors believe, and I concur, that a number of vendors will assert their right to reclaim goods delivered to the Debtors shortly before or soon after the Petition Date, or seek payment of an administrative claim under section 503(b)(9) of the Bankruptcy Code.
This statement is intended to support a first day motion to restrict the manner of exercise of reclamation and 503(b)(9) claims. In the case of reclamation claims, the motion seeks to limit the remedy of reclamation claimants to an administrative expense claim.
The 30 Top Unsecured Creditors
The Debtors have listed the following creditors as being their top 30 largest unsecured creditors. None of the claims were listed as contingent, unliquidated, disputed or subject to setoff. Accordingly, that column has been deleted. The following list also does not include any creditor contact information that may have been included by the Debtors.
|Creditor Name||Nature of claim||Amount of claim|
|U.S. Steel||Trade Creditor||$690,694.00|
|Severstal North America||Trade Creditor||$635,963.00|
|Duferco Farrell Corporation||Trade Creditor||$388,686.00|
|Kenwal Steel||Trade Creditor||$305,340.00|
|Steel Technologies Inc.||Trade Creditor||$296,360.00|
|Nucor Cold Finish||Trade Creditor||$178,430.00|
|Barsteel Corporation||Trade Creditor||$161,458.00|
|Marsh L SA, Inc.||Trade Creditor||$148,504.00|
|J.B. Lee Transportation||Trade Creditor||$89,876.00|
|Great Western Steel Company||Trade Creditor||$67,763.00|
|Century Chemical Corporation||Trade Creditor||$51,687.00|
|Frisco Steel Corp.||Trade Creditor||$45,768.00|
|The Timken Corporation||Trade Creditor||$45,119.00|
|Universal Am-Can Ltd.||Trade Creditor||$44,021.00|
|Tufts Grinding Company||Trade Creditor||$43,446.00|
|Ceva Freight LLC||Trade Creditor||$41,298.00|
|Wayne County Treasurer, Indianapolis, IN||Trade Creditor||$40,985.00|
|Superior Steel Supply, LLC||Trade Creditor||$39,315.00|
|Ferrous Metal Transfer Company||Trade Creditor||$38,916.00|
|Perfect Cut-Off Inc.||Trade Creditor||$34,171.00|
|Ameren Energy Marketing||Trade Creditor||$33,572.00|
|Behringer International Machine||Trade Creditor||$28,327.00|
|MSC Industrial Supply Co., Inc.||Trade Creditor||$26,619.00|
|Macsteel Heat Treating Div. Dept.||Trade Creditor||$25,088.00|
|Wells Fargo Business Credit||Trade Creditor||$23,563.00|
|National Tube Supply Co.||Trade Creditor||$23,276.00|
|Ferrous Metal Processing Co.||Trade Creditor||$20,847.00|
|Mazzella Lifting Technologies||Trade Creditor||$20,509.00|
The Top 30 List does not include: (1) persons who come within the definition of “insider”; or (2) secured creditors, unless the value of the collateral is such that the unsecured deficiency places the creditor among the holders of the largest unsecured claims.
Bankruptcy Rule 1007(d) provides that a debtor shall file “a list containing the name, address and claim of the creditors that hold the 20 largest unsecured claims, excluding insiders.” Fed. R. Bankr. P. 1007(d). In the case of a multi-debtor filing, it is likely that many creditors are shared among certain of the debtors. This is especially the case where the debtors operate as a single business enterprise. Under these circumstances and provided that there is a request for joint administration, it is common for multiple, related debtors to request authority to file a single, consolidated list of their collective largest general unsecured creditors. These requests usually are granted by the bankruptcy court.
The Top Unsecured Creditor List is never to be considered a waiver of any defense to or “allowability” of a listed claim or an admission of the amount of any listed claim. It is common for the amount of the claims to shift and sometimes a claim that is initially is undisputed is later disputed. Creditors should always consult the official claims register.
There are more posts about the PTC Alliance bankruptcy. To see these additional posts, click on the “Filed Under” link below.