Barzel Industries Bankruptcy – Trade Debt Picture, Largest Unsecured Creditors

Barzel Industries Inc. (“Barzel”) and its 7 affiliates who also filed bankruptcy on September 15, 2009 (the “Debtors”) have requested authority to file a consolidated list of the 20 largest unsecured creditors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors.  The Debtors estimate that they have, on a consolidated basis, outstanding pre-petition trade debt in the amount of approximately $5.6 million, out of which $2.4 million is owed to trade creditors and service providers on the Top Unsecured Creditor List.  Given that the total of Debtors’ liabilities is approximately $365 million, trade debt will not have any significant effect on the direction of this bankruptcy.

Barzel Bankruptcy – Identification of Debtors and Petitions

Barzel Industries Inc. (“Barzel”) and 7 affiliated entities (”Debtors”) filed petitions on September 15, 2009 in the Bankruptcy Court for the District of Delaware for relief under Chapter 11 of Title 11 of the United States Code.  The Debtors have moved for joint administration of the Debtors’ cases under case number 09-13204.  The bankruptcy presents some potential challenges for suppliers at the most fundamental level – the correct identification of the supplier’s customer.