Geneva Steel LLC estimates its 2001 sales will amount to roughly $338 million — a 40 percent slide from $559 million in sales in 2000 — according to a filing Monday with the Securities and Exchange Commission.
The filing noted that Geneva's 2001 annual report would be delayed two weeks due to the company's second voluntary Chapter 11 bankruptcy petition on Jan. 25.
"The additional burdens of the case, together with significantly reduced personnel, have resulted in a delay in the completion of the company's financial statements and related notes," the filing said.
In 2000, Geneva sustained a net loss of $33 million. A total net loss for 2001 has not yet been determined. However, the company has already reported a $68 million net loss for the first nine months of 2001.
Blaming a prolonged period of low-priced imports combined with weak domestic demand for the company's products, Geneva announced on Nov. 14 it was temporarily shutting down its operations in order to conserve cash.
The shutdown resulted in the layoffs of 1,164 employees by year's end.
Geneva Steel listed $264.4 million in assets and $192.9 million in debts when it filed for bankruptcy earlier this year.
The integrated steel producer is currently in negotiations with several banks over additional financing, according to Ken Johnsen, president and chief executive officer.
The financing, if obtained, would be used to purchase an $80 million electric arc furnace that could improve efficiency and put Geneva back in business.
A bankruptcy judge in March approved a cash collateral agreement between Geneva and its lead lender, Citicorp USA Inc., allowing the company access to roughly $12 million to $14 million from cash reserves and accounts receivables through May 1.
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