| |
Keystone Steel & Wire Case Study
Minimizing Restructuring Costs for a Steel Giant
Background
Founded in 1889, the Keystone Steel & Wire Company (“Keystone”) began in a humble shed on a rented farm in Dillon, Illinois. Peter Sommer invented a machine that wove steel wire fence to replace traditional wooden timber fences. This invention made life easier for millions of American farmers, and spawned a mid-western steel giant. On Feb. 26, 2004, Keystone and five of its subsidiaries filed for Chapter 11 protection, due to escalating costs for healthcare premiums and natural gas, as well as higher prices for the raw materials from which it makes its steel and wire products.
Results
KCC worked closely with Keystone, its counsel, Kirkland & Ellis, and financial advisor, FTI Consulting on a streamlined claims administration and resolution process. KCC enabled the professionals to easily navigate the claims reconciliation process and quickly access case information through its dedicated Keystone case website. KCC’s web-based system enabled Keystone’s legal counsel to resolve claims quickly and efficiently, without consuming extensive time and costly resources. Keystone’s critical issues were resolved consensually and with minimal Court involvement, saving hundreds of thousands of dollars in restructuring costs and preserving goodwill among the Company and its employees.
Keystone emerged successfully from Chapter 11 on August 31, 2005—18-months after it filed its petition. Despite the bankruptcy, employees’ pension payments remained unaffected due to the company’s commitment to its employees. With continued employee support, Keystone has become a viable and profitable company. KCC continues to work with Keystone on disbursement matters in accordance with the Plan of Reorganization.
To learn more about
how KCC can help ensure your success, email or
call us at 866.381.9100. |
| |
|
|