Jorgensen Forge, an open-die forger supplying aerospace, energy, defense, and other markets, is operating within a Chapter 11 bankruptcy declaration, involving its parent company and three other holdings. The Seattle-area manufacturer produces parts in low-alloy and stainless steel, aluminum, titanium, and nickel-base alloys.
Jorgensen Forge is owned by Constellation Enterprises LLC, a portfolio company that filed for creditor protection under Chapter 11 of the federal bankruptcy code on May 17, indicating its goal is to restructure its debt obligations. In addition to Jorgensen, three other portfolio companies also filed bankruptcy declaration.
According to the filing, the five companies’ total debts amount to $238 million. Most of the debts and obligations are related to equipment failure and lost business for Columbus Steel Castings, an Ohio foundry, but the group’s other holdings have accrued losses that Constellation Enterprises attributes to cuts in U.S. defense spending.
Jorgensen operates four open-die presses (660-, 1,250-, 2,500-, and 5,000-tons) and two 180-in. diameter ring-rolling mills. It has a 2,400-ton ring expander capable of stretching parts to a maximum 225-inch diameter, and 2,500-ton horizontal straightening press with a 72-in. maximum diameter flange capability. It also offers a range of heat-treating and machining options, and it has special capabilities for “marine shafting” as well as full testing and inspection services.
Jorgensen Forge’s finished products include forged bars, rings, blocks, discs, and sleeves.
The Chapter 11 filings also include Columbus Steel Castings, Commercial Metal Forming, and Zero Manufacturing. Like Jorgensen Forge, Commercial Metal Forming, and Zero Manufacturing are continuing to operate, and Constellation Enterprises indicated that some of its lenders have proposed buying those companies following the bankruptcy reorganization.
Columbus Steel Castings is idle now, and Constellation Enterprises has filed a letter from an unnamed source stating its intention to buy Columbus Steel Castings, though such a transaction would require a final purchase agreement and an approval of the sale by the bankruptcy court. The value of that offer and potential buyer’s future plans for the assets remain unknown.
