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Lakeside Steel Inc V.LS



TSXV:LS - Post by User

Post by FullSteamAheadon Mar 18, 2009 10:31pm
594 Views
Post# 15854113

What a mess !

What a mess !Lakeside is in real trouble and unless the market for pipe turns around before the end of the year, I think they will be out of business.

Their balance sheet is a disaster waiting to explode on them, with debt in excess of $27 million and no cash. Given the conditions in the credit market, it is highly unlikely they can get financing to continue as a going concern.

The company is presently operating on one shift having laid off a substantial number of its workers, and there's talks going on to reduce that one shift down to a four day week. Week long shutdowns are imminent as the company's order book gets lighter.

I simple don't see how they can continue much longer without financing or a quick turnaround in their core markets. The latter is unlikely and the former near impossible so it's not difficult to see where this is headed.

Expect more layoffs and shutdowns in order to preserve what little is left of this franchise.

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