Real Industry Inc. and its aluminum recycling business Real Alloy Holding Inc. filed for bankruptcy protection on Friday, the Wall Street Journal reported today. Real Industry, a publicly traded holding company, and its Beachwood, Ohio-based Real Alloy unit plus seven related companies sought chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., with funded debt obligations of some $401 million. In a declaration filed with the court, Chief Executive Michael Hobey blamed the aluminum recycling company’s financial problems on continued weakness in the steel industry and significantly lower commodity prices, which put downward pressure on the price of steel scrap and boosted demand for aluminum scrap, a key input for its business. The company was also forced to shut down its Houston aluminum recycling facility for 10 days due to Hurricane Harvey, the CEO said.
