MIKE MIAZGA 2017-06-12 03:59:06
AFGLOBAL FILES CHAPTER 11BANKRUPTCY PROTECTION Houston-based AFGlobal Corp. (Ameriforge Group) recently filed for Chapter 11 bankruptcy protection and formally announced it has entered into a restructuring support agreement with majority support from its senior lenders. It also has launched a solicitation for a prepackaged reorganization plan that will substantially reduce AFGlobal’s debt service obligations and position it for long-term success, it noted. “We took the opportunity to reorganize the company under this filing and as a result, we have a new infusion of funding to drive the company forward and build on our technology platform,” AFGlobal Director of Marketing and Communications Christine Mathers told Supply House Times. In late May, AFGlobal announced the prepackaged recapitalization reduced funded debt by about $680 million, as it had stated in the earlier filing. Additionally, the company’s new ownership group and other stakeholders committed $120 million of new capital to the company, AFGlobal announced. “Restructuring activities are underway to support our growing oil and gas business, alleviating the company of its unsustainable debt, given current market conditions,” Curtis Samford, president, and CEO of AFGlobal, said in early May. “Retiring past debt will enable us to more efficiently continue on our path toward building next-generation technologies that support the next phase of drilling and production in our industry. We greatly appreciate the support offered by our senior lenders as well as the infusion of new capital.” Brandy Chetsas, who reports on bankruptcy cases for the website BankruptcyData.com, explained to Supply House Times the Chapter 11 filing was initiated in order to make an RSA possible through the company’s prepackaged plan of reorganization. In the Chapter 11 filing with the United States Bankruptcy Court Southern District of Texas Houston Division, AFGlobal wrote: “In the months and years leading up to their decision to seek relief under Chapter 11 of the Bankruptcy Code, the Debtors faced a number of economic hurdles. The difficulties faced by the company are consistent with those impacting the oil and gas industry more broadly. Beginning in 2014 and continuing through 2016, the oil and gas market experienced a significant oversupply of capacity leading to a substantial and rapid decline in oil prices. This, in turn, resulted in significantly lower activity by the company’s customers, manifesting into lower revenues and losses. Lower steel prices and declining international demand for industrial products also resulted in lower activity from the company’s distributors. “This prolonged downturn in commodity prices only exacerbated the company’s legacy capital structure, which was intended to support a much larger company before the company began streamlining its business with strategic divestitures.” Headquartered in Houston, Texas, AFGlobal has more than 20 facilities worldwide. PVF MANUFACTURER COALITION FILES VIOLATION OF CHINA ANTIDUMPING ORDER In a petition filed with the U. S. Department of Commerce on May 1, a coalition of U.S. manufacturers that produce carbon steel butt-weld pipe fittings used in pipeline applications in the oil and natural gas energy sectors charges that a 1992 antidumping duty order against butt-weld pipe fittings from China is being circumvented by Chinese pipe fittings that undergo minor processing in Malaysia. The coalition, whose members include Tube Forgings of America, Mills Iron Works, and Hackney-Ladish, told DOC that companies in Malaysia are buying unfinished pipe fittings from China, performing finishing operations in Malaysia and selling the fittings to U.S. customers as products of Malaysia. In some cases, they contend the processing in Malaysia may be as minor as marking “Malaysia” as the country of origin. These circumvention schemes enable manufacturers in China to avoid special import duties as high as 183%, the coalition charges. “The antidumping duty order against butt-weld pipe fittings from China was a lifesaver for U.S. manufacturers when it was issued in 1992,” Tube Forgings President Jay Zidell said. “It has been effective in relieving the harm to our industry from competition with unfairly priced products coming from China. Unfortunately, we have seen recently that manufacturers in China are getting around the antidumping duty order by moving their products through Malaysia. As a result of this Malaysian connection, we are again facing competition from China’s unfairly priced products.” Tube Forgings Vice President and COO Patrick Benavides added: “Our coalition has asked the Commerce Department to put a stop to this end-around by declaring the butt-weld pipe fittings imported from Malaysia to be subject to antidumping duties as though they were exported directly from China, unless the exporters can prove that the fittings did not originate from Chinese-origin unfinished fittings.” Hackney-Ladish General Manager Jeff Carr added the collation believes the evidence submitted to DOC makes out a “clear case of circumvention.” “If the Commerce Department concludes that the antidumping duty order is being circumvented, importers of carbon steel butt-weld pipe fittings from Malaysia could find themselves liable for additional import duties as high as 183%,” he said. DOC was expected to issue a preliminary determination as soon as mid-June. ASA APPOINTED TO VOTING POSITION ON ASME B31.3 FOR PROCESS PIPING American Supply Association Director of Codes and Standards Hugo Aguilar has been appointed to a voting position to the ASME B31.3 (Process Piping) Subgroup on General Requirements (SG-A). This code contains rules typically found in petroleum refineries; chemical, pharmaceutical, textile, paper, semiconductor and cryogenic plants; and related processing plants and terminals. Developed under a continuous maintenance process, ASME B31.3 is nationally recognized and approved by the American National Standards Institute. The provisions in the ASME B31.3 can be applied to petroleum products, gas, steam, water and refrigerant systems. ASME B31.3 is addressed in the International Fuel Gas Code for hydrogen service, the International Building Code and International Fire Code for hazardous production materials. Maintaining an active role in the ASME B31.3 development process benefits ASA members in the HVAC industry but mainly the PVF industry, Aguilar noted. It has been reported that up to 60% of the PVF products being sold or manufactured by ASA members are governed by ASME B31.3. MRC GLOBAL ANNOUNCES FIRST-QUARTER RESULTS MRC Global recently announced its first quarter 2017 results. The company’s sales were$862 million for the first quarter of 2017, which were 10% higher than the first quarter of 2016 and 20% higher than the fourth quarter of 2016. As compared to last year, increased customer activity primarily in the midstream sector drove the improvement. “We are confident the recovery in the oil and gas market is underway with first quarter 2017 revenue higher than any quarter in 2016,” MRC Global President and CEO Andrew Lane said. “This quarter, we saw a 20% sequential increase in sales. This performance was driven by growth across all sectors with very strong performance in our midstream transmission and gathering sector as well as each of our Canadian and U.S. upstream businesses.” MRC Global's first quarter 2017 gross profit was$140 million or 16.2% of sales, an increase from first quarter 2016 gross profit of$133 million, or 17% of sales. YEAGER SUPPLY CELEBRATES the 50TH ANNIVERSARY Reading, Pa.-based industrial PVF distributor Yeager Supply is celebrating its 50th anniversary this year. “Ed Yeager (founder) and family wish to express our sincere appreciation to our employees and retirees for their loyal support as we celebrate our 50th year in business,” the company wrote on its website. Yeager, a member of ASA and the AD buying group, started with one location, seven employees “and a little Ford F100 pickup truck teetering lopsided down the road,” the company’s 50th-anniversary celebration note continued. “We certainly have come a long way. We could not have come this far without the loyal support and continued hard work of each member of the Yeager team — past and present.” Today, Yeager features four locations, 108 employees, and 18 trucks. “AD is very pleased to recognize and salute longtime member Yeager Supply on its 50th anniversary,” AD PVF and PHCP Divisions Vice President Gary Jackson said. “With Ed Yeager’s leadership and through the actions of the entire Yeager team, they are known as a well-respected supplier partner to their customers as well as a strong advocate for the manufacturers and brands they support. Their commitment to customer service and strong supplier relationships has helped them be a great example of how an independent distributor can be successful in today’s PVF markets.” AD PHCP President Jeffrey Beall added: “Mr. Yeager is a true American success story and an icon in the PVF world. In 50 years he has seen it all and continues to grow from those humble beginnings.” PVF ROUNDTABLE GOLF OUTING DRAWS RECORD NUMBERS The PVF Roundtable Don Caffee Memorial Golf Tournament enjoyed record attendance during its annual May outing at Sweetwater Country Club in Sugar Land, Texas. The golf tournament helps raise money for the PVF Roundtable Scholarship Fund. This year’s golf tournament raised in the neighborhood of $60,000. PVF Roundtable President Joe Pro told Supply House Times earlier this year the group has budgeted $150,000 for scholarships in 2017, which would bring the lifetime total of scholarship money raised to $500,000. A day later, the PVF Roundtable spring meeting again attracted a massive crowd for its second networking meeting of the year at the Marriott Westchase in Houston. The Roundtable returns to the Westchase on Aug. 16 for its summer meeting.
Published by SupplyHouseTimes. View All Articles.
This page can be found at http://digital.bnpmedia.com/article/PVF+BEAT/2810719/414571/article.html.