Exhibit 99.1
[LOGO]
NEWS RELEASE
Financial: Richard J. Gonzalez, CFO-BSC
Phone: (985) 652-4900 Fax: (985) 652-0485
E-Mail: fna@bayousteel.com - Web Page: http://www.bayousteel.com
PO Box 5000, LaPlace LA 70069-1156
Media Contact: - Greg Beuerman - The Beuerman Miller Group
Phone: (504) 524-3342 - E-Mail Address: Beuerman@pr-ontarget.com
BAYOU STEEL CORPORATION
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FOR IMMEDIATE RELEASE
BAYOU STEEL CORPORATION FILES
VOLUNTARY CHAPTER 11 PETITION
Operations to Continue as Usual
LaPlace, Louisiana (January 23, 2003)-- Bayou Steel Corporation (AMEX:BYX)
announced that it has filed a voluntary petition for reorganization under
Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas, Dallas
Division on January 22, 2003.
The filing is a vital component of the Company's strategy to preserve
assets, improve its liquidity, and increase its financial vitality. The Chapter
11 filing will also provide Bayou with the necessary time to stabilize the
Company's finances and implement a strategic plan that will ensure the return of
sustained profitability to the Company.
According to Jerry Pitts, President and Chief Operating Officer of Bayou
Steel, "While the decision to file a Chapter 11 petition was very difficult, we
believe it was necessary to obtain the time needed to stabilize Company finances
and implement a plan to ensure long-term viability. Recently, we have been
encouraged by an increase in shipments and an announced $15 per ton price
increase that will be fully implemented by April."
Pitts stressed that the filing will provide a stable work environment for
Bayou's approximately 510 employees, and will allow the company to fulfill
existing and future obligations to its customers. "We will continue business
operations as usual during this period, meeting customer obligations, and
providing quality products and services as we seek to increase market share,"
Pitts said.
The Company also announced that it continues to negotiate for
debtor-in-possession (DIP) financing with the existing senior secured lender,
subject to court approval. A subsequent announcement with respect to the DIP
financing will be made shortly.
The U.S. Bankruptcy Code allows a company to continue to operate its
business as usual and provides special protections for vendors, suppliers,
employees and others who provide goods and services to that company after the
filing. Pitts emphasized that Bayou's relationships with key suppliers and
customers remain intact.
Pitts also noted, "Bayou's employees, suppliers and customers have
sustained and supported us throughout these difficult times. We are very
grateful for their loyalty and look forward to working together to emerge
successfully."
This release contains certain forward-looking statements regarding the
outlook for the Company's short-term financial results. Such forward-looking
statements are subject to risks and uncertainties and actual results could
differ materially from those projected. Such risks and uncertainties include but
are not limited to general business and economic conditions; changes in the
selling price of the company's finished products or the purchase price of steel
scrap; competitive products and pricing; as well as fluctuations in supply
(caused by imports or additional domestic capacity) or demand; changes in the
price of supplies, power and natural gas; cost overruns or start-up problems;
trade terms; liquidity availability; and potential equipment malfunctions. Any
forward-looking statements contained in this document speak only as of the date
hereof, and the Company disclaims any intent or obligation to update such
forward-looking statements.
Bayou Steel Corporation manufactures light structural and merchant bar
products in LaPlace, Louisiana and Harriman, Tennessee. The Company also
operates stocking locations along the inland waterway system near Pittsburgh,
Chicago and Tulsa.
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