Two long and specialty steel producers in Brazil filed for bankruptcy last week, according to media reports. Both companies belong to the Wilson Santos group.
Cisam Siderurgia and Ciafal, located in the cities of Para de Minas and Divinopolis, respectively, in the producing state of Minas Gerais, made the request last week.
According to Cisam financial director, Flavio Silvino, the companies owe BRL 200 million (US$87.9 million) to creditors. The debts are a result of an expansion plan for both companies.
Silvino said the bankruptcy action was a way the group found to keep production going. Altogether, the companies have a capacity to produce up to 300,000 mt of steel per year.