Lee Steel seeks push of plan filing period to allow for sale closure

By Kali Hays

New York, July 9 – Lee Steel Corp. is seeking an extension of its Chapter 11 plan filing period through Nov. 24 from Sept. 30, according to a Thursday motion with the U.S. Bankruptcy Court for the Eastern District of Michigan.

The company said that it has been “working diligently” since filing for bankruptcy and is in the process of selling substantially all of its assets.

Under approved bidding procedures, an auction for the assets is not set to take place until Aug. 11, meaning that any sale would be unlikely to close prior to the end of August, leaving the company vulnerable to competing plans if the filing period is not extended.

Lee said that the extension will not only allow it to avoid outside plans but will give the company time to “fully understand” the amount of sale proceeds available for creditors and to explore any alternatives available for the company, according to the motion.

Lee is a Novi, Mich., steel maker that filed for bankruptcy on April 13. The Chapter 11 case number is 15-45784.

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