Orderly Wind Down of Steel Service Center

Southline Steel Industries

Bessemer, Alabama


Steel service center. $50 million sales. $10 million debt.

  • The Company lost over 40% of its business due to the recession, was losing money, and was unable to pay its bills.
  • The Company’s steel suppliers began dropping prices in order to sell their own inventory and they began to sell to the Company’s customers direct.
  • The Company’s shareholders concluded that the business was not viable and they desired to liquidate the business out of courtwithout the expense of a bankruptcy.


  • Morris Anderson was brought in to develop a liquidation plan that would be supported by the Company’s lenders.
  • Morris Anderson worked with the Company team to execute its plan to sell the inventory for the highest amount possible, to collect accounts receivable and to hold an equipment auction.
  • Morris Anderson communicated with the banks and the largest unsecured creditors to keep them informed of the progress of the liquidation.


  • The liquidation of the Company occurred out-of-court without the cost of a bankruptcy filing.
  • Over $10 million of secured debt with two banks was retired in full.
  • Over $1 million was available for distribution to unsecured creditors.

Howard R. Korenthal

Howard R. Korenthal is a Principal and Chief Operating Officer at MorrisAnderson. He has over 30 years of experience working with financially distressed and underperforming companies, serving in senior management, interim management and consulting roles. Howard began his career with the Big Eight accounting firm of Coopers & Lybrand in Chicago where, as an audit Read More