Two Georgia companies associated with the construction industry petitioned for Chapter 11 bankruptcy protection on Thursday: Brown Steel LLC and Case Engineered Lumber, Inc.

Brown Steel, based in Newnan, manufactures and fabricates structural and plate steel for commercial and industrial customers. G. Frank Nason IV of Lamberth, Cifelli, Stokes, Ellis & Nason represents the company, which in its petition, filed in U.S. Bankruptcy Court for the Northern District of Georgia, estimates that it has between $1 million and $10 million in both assets and liabilities.

This reorganization is not Brown Steel’s first debt-fueled trip to court. Colonial Bank of Alabama, represented by Kevin B. Getzendanner of Arnall Golden & Gregory, sued the company in Coweta Superior Court on June 11. According to the complaint, which seeks a receiver and injunctive relief, Brown Steel defaulted on more than $5.6 million in loans from the bank.

According to a report in the Newnan Times-Herald, other suits against the company include claims that Brown Steel owes $103,000 to AIM Steel Inc.; more than $47,000 to Georgia Powder Coating; in excess of $27,000 to The Fastenal Company and nearly $24,000 to Southland Manufacturing.

Nason, the company's bankruptcy counsel, said Brown Steel did not dispute the debt to Colonial; the company's bankruptcy petition lists Fastenal and Southland among its 20 largest unsecured creditors. Nason said his client does dispute the AIM Steel and Georgia Power Coating claims. "In fact, we think they owe [Brown Steel] money," he said. 

He said Colonial's action, which seeks to have Brown Steel's receivables assigned to the bank, was one of the factors pushing his client to seek reorganization. That suit and other debt-related litigation against Brown Steel has been stayed pending the outcome of the Chapter 11 petition.

"Our goal, really, is to get the protection of the bankruptcy court, work out a budget that will allow us to continue the business as a going concern and sell the business," he said, explaining that the company planned to use cash collateral from receivables to keep going. "We think it has value as a going concern."

The other reorganization petition filed in the Northern District by Flowery Branch, Ga.-based Case Engineered Lumber, lists assets of less than $50,000 and between $10 million and $50 million in liabilities. Barbara Ellis-Munro of Ellenberg, Ogier, Rothschild & Rosenfeld represents the company, which supplies engineered floor and roof systems to homebuilders and lumber dealers.