Crucible Industries declares Chapter 11 bankruptcy

[JMM]

https://www.yahoo.com/news/crucible-ind ... 52686.html

https://cnycentral.com/news/local/cruci ... bankruptcy

[Wartstein]

Still hope they can recover and continue somehow ... also of course that the almost 160 employees, mentioned in one of your linked articles can keep their jobs.

[standy99]

Well I have done my bit to keep them open…..have a bit of steel coming downunder from the and ordered a bit from local suppliers also.

[hobbyist]

What does this mean for CPM steels?

[Mrj]

viewtopic.php?t=97448

[Deadboxhero]

https://www.syracuse.com/business/2024/ ... -year.html

Well, Good news.

There is a buyer, initial bid hearing is tomorrow.

If everything goes smoothly there will be a reorganization like in 2009, but our favorite steels will be safe.

Should the worst happen, Niagara Specialty Metals has been introducing fail safes to keep CPM products rolling as outlined in the other thread.

[WilliamMunny]

I think all the forum members should all just chip in and buy it.

[Deadboxhero]

I think all the forum members should all just chip in and buy it.

+20 million, no biggie.

[p_atrick]

I think all the forum members should all just chip in and buy it.

+20 million, no biggie.

Don't forget about all the restructured debt you would inherit. Here's hoping it all works out.

[WilliamMunny]

I think all the forum members should all just chip in and buy it.

+20 million, no biggie.

Not going to lie, I thought it would be a lot more for a company like Crucible. With how COVID brought that lack of US based steel production to light, it would be worth a lot more.

At 20 million, if run well, I feel like it's a barging. On the flip side, it's also why I am not a business owner and probably shouldn't be.

[SpyderEdgeForever]

If we all chip in do we get a bonus monthly Mule?

[Bolster]

At 20 million, if run well, I feel like it's a barging....

Agreed. 20M seems like a low price to pay for an amazing industry like Crucible. Would suspect no shortage of buyers at that price.

[sv4]

From reading the news, there were indeed at least 4 interested buyers. But none wanted to buy outside of the bankruptcy acquisition process..

[cjk]

From reading the news, there were indeed at least 4 interested buyers. But none wanted to buy outside of the bankruptcy acquisition process..

Kinda like Spyderfans only wanting to buy stuff during a MAP sale.

[p_atrick]

From reading the news, there were indeed at least 4 interested buyers. But none wanted to buy outside of the bankruptcy acquisition process..

Kinda like Spyderfans only wanting to buy stuff during a MAP sale.

According to the article, Crucible owes money to more than 250 entities. If you were to buy them before the bankruptcy proceedings, you would inherit the original debt and the original timeline for repayment.

[RustyIron]

Is their machinery brand new, or is it clapped-out junk? A factory with worn out machinery is only worth the price of the building and the land. Is the dirt on the land clean, or is it contaminated with all the toxic waste that one might expect from a hundred year old foundry? Remediation could cost more than the land could ever be worth. Are the intellectual assets worth the risks?

[p_atrick]

Is their machinery brand new, or is it clapped-out junk? A factory with worn out machinery is only worth the price of the building and the land. Is the dirt on the land clean, or is it contaminated with all the toxic waste that one might expect from a hundred year old foundry? Remediation could cost more than the land could ever be worth. Are the intellectual assets worth the risks?

Not sure if this helps answer the question, but they value their assets at $21.5 million (according to the article). Are they being generous with that valuation? No idea.

[Bolster]

Is their machinery brand new, or is it clapped-out junk? A factory with worn out machinery is only worth the price of the building and the land. Is the dirt on the land clean, or is it contaminated with all the toxic waste that one might expect from a hundred year old foundry? Remediation could cost more than the land could ever be worth. Are the intellectual assets worth the risks?

I half expected you would be one of the potential buyers, Rusty. OH, I see what you're doing...frightening competitors about the factory so you can scoop it up at a bargain.

[SpyderEdgeForever]

Some updates on this, various comments people are making:

1 Larrin Thomas still owns the rights to MagnaCut Steel. Someone said if CPM goes down it will be a MagnaCut free for all. Not true.

2 Someone asks why don't all the knife companies of America [Spyderco, Cold Steel aka GSM or their new owner, Kershai Kai, Gerber, etc] all pool their money and buy CPM and other steel makers to ensure American knife making survives?

3 Hitachi and Aichi/Toyota of Japan may want to buy these. Please keep them in American hands.

4 "The company traces its roots back to 1876, when Sanderson Brothers & Co. purchased Sweet Iron Works located between Erie Boulevard and West Fayette Street.Sanderson Brothers joined 12 other steel companies to form Crucible Steel Co. of America in 1900."

5 Can CPM retool to produce other materials that they can sell to pay off their costs and remain? Carbon Composites?

[sal]

Is their machinery brand new, or is it clapped-out junk? A factory with worn out machinery is only worth the price of the building and the land. Is the dirt on the land clean, or is it contaminated with all the toxic waste that one might expect from a hundred year old foundry? Remediation could cost more than the land could ever be worth. Are the intellectual assets worth the risks?

Hi RustyIron,

Reputation, good name, knowledge, experience and trade secrets.

sal