Today, it was announced that 163-year-old Hussey Copper Ltd. is filing for bankruptcy protection under Chapter 11. The bankruptcy attorney for Hussey Copper Ltd. filed bankruptcy in the U.S. Bankruptcy Court in Delaware. This is where the company was incorporated. It was announced that the company is filing bankruptcy while looking into selling some of the company’s assets.
The company currently has 536 employees and also has an operation in Kentucky. Even though they are filing bankruptcy, the company will continue operating until it can sell its assets. A company spokesperson said that they had entered into an asset purchase agreement with KHC acquisition of Red Bank, New Jersey. The bankruptcy attorney for Hussey wants the bankruptcy court to approve a competitive bidding process with KHC as one of the bidders.
Company documents revealed that it owes more than $38 million to its lenders and $29 million to their vendors, while losing $3 million last year on revenues of more than $381 million.
Hussey Copper is a leading producer of copper bus bar for the entire world. The company has roots all the way back to 1848 and recently has had concerns with a slowing global economy. Many believe that demand for raw materials will continue to set prices lower. This, along with the drop in copper prices of 21% this year could be attributed to the bankruptcy filing.