Bayou Steel Declares Bankruptcy, Closes
Bayou Steel, an arc mill steelmaker based in Louisiana, took its customers, creditors, and its home parish by surprise when it abruptly announced bankruptcy with no prior notice at the beginning of October. All 376 employees will be laid off.
The company’s main plant in LaPlace, La., is barge-served, receiving bargeloads of scrap metal. The company also has a rolling mill in Harriman, Tenn., as well as depots in Catoosa, Okla.; Leetsdale, Pa., and Chicago, Ill.
According to media accounts, the company is owned by Black Diamond Capital Management, a private equity group based in Greenwich, Conn. Black Diamond previously bought Bayou Steel after Hurricane Katrina, then sold it in 2008 to global steelmaker Arcelor Mittel for $475 million. It bought back Bayou Steel in 2016 and reduced its workforce by one-third.