SSI Suspends Production at U.K. Mill, Undertakes Debt Restructuring
09/21/2015 - Thailand's Sahaviriya Steel Industries (SSI) and three main creditors said they will attempt to restructure THB50 billion (US$1.4 billion) in debt to repair the steelmaker’s balance sheet, Reuters reported.
The restructuring might include an equity issue, a sale of its British assets or a new partner, SSI Group chief executive Win Viriyaprapaikit told reporters during a news conference on 21 September, according to the news service.
The company is in the midst of a cash crisis and has suspended operations at its Redcar mill in the United Kingdom. Employees were to have reported for work today, although the blast furnace was cooled during the weekend and hundreds of contractors have already been laid off, according to The Northern Echo newspaper.
The Redcar mill had employed around 2,000 people, plus another 1,000 contractors, according to the newspaper.
Reuters said the debt to be restructured includes US$790 million in loans related to the mill. Company officials said negotiations with stakeholders related to SSI UK are to be concluded by the end of September.
SSI acquired the Redcar mill in 2011 from Tata Steel and relit the blast furnace there in the following year. However, the operation has struggled to achieve profitability ever since.
The U.K. operation accounted for about half of SSI’s sales, Reuters reported.
Viriyaprapaikit said the company’s Thai operations remain profitable, but he expects SSI to post a loss this year because of the U.K. mill, Reuters said.
The company is in the midst of a cash crisis and has suspended operations at its Redcar mill in the United Kingdom. Employees were to have reported for work today, although the blast furnace was cooled during the weekend and hundreds of contractors have already been laid off, according to The Northern Echo newspaper.
The Redcar mill had employed around 2,000 people, plus another 1,000 contractors, according to the newspaper.
Reuters said the debt to be restructured includes US$790 million in loans related to the mill. Company officials said negotiations with stakeholders related to SSI UK are to be concluded by the end of September.
SSI acquired the Redcar mill in 2011 from Tata Steel and relit the blast furnace there in the following year. However, the operation has struggled to achieve profitability ever since.
The U.K. operation accounted for about half of SSI’s sales, Reuters reported.
Viriyaprapaikit said the company’s Thai operations remain profitable, but he expects SSI to post a loss this year because of the U.K. mill, Reuters said.
