Recycling Today reported that Tri Star Aluminum has filed a voluntary petition in the US Bankruptcy Court for the Middle District of Tennessee to reorganize under Chapter 11. Tri Star continues to operate as normal, doing tolling for loyal customers and purchasing scrap aluminum to process into alloy 380 for sale through its existing distribution channels.

Mr Joe Levanowicz president of Tri Star said that "This was a difficult but necessary decision. Our entire industry has suffered over the past 18 months with falling aluminum prices and weak demand. We are confident that the worst is behind us and restructuring now will put us on stronger footing as demand increases."

Tri Star is working with Tortola Partners and has hired Mr Robert Gonzales as Chief Restructuring Officer during the company’s reorganization.

Mr Gonzales said that "As more and more aluminum companies have filed Chapter 11, or simply gone out of business, scrap dealers have become reluctant to extend trade credit, making it tough for otherwise healthy companies like Tri Star. He said that “Now that we’ve filed to reorganize, our trading partners can be confident that obligations going forward won’t get stuck as pre-petition debts."

(Sourced from recyclingtoday.com)