Cognor’s Zlomrex Seeks Bankruptcy Protection in New York

Zlomrex International Finance SA, a unit of Polish steel company Cognor SA, filed for Chapter 15 bankruptcy protection in Manhattan court today.

The petition listed more than $100 million each in debt and assets. The special purpose entity, formed to issue debt related to a merger with Cognor, was already reorganizing in Europe.

Chapter 15 helps foreign companies organize U.S. claims against them as they restructure obligations in a non-U.S. court. A U.K. court ordered a Jan. 8 vote on Zlomrex’s debt restructuring.

The company’s 8.5 percent notes due 2014 traded at 63.81 euro cents, according to data compiled by Bloomberg.

The case is In re Zlomrex International Finance SA, 13-bk-14138, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

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