Steel-Focused North American Industrial Group Files for Chapter 11 Bankruptcy

UPG Enterprises LLC, an Illinois-based industrial group, along with its affiliates, has filed for Chapter 11 to proceed with a court-guided sale.

Whatnow News Team News Writer
Representative Image, UPG Enterprises LLC enters bankruptcy (Image credit: Hoang NC | Pexels | Created on Canva)

UPG Enterprises LLC has filed voluntary Chapter 11 petitions along with certain affiliates in the U.S. Bankruptcy Court for the Northern District of Illinois. The company operates a group of industrial businesses focused on steel processing and production, manufacturing, distribution, and logistics. The Oak Brook, Illinois-based company operates at more than 20 locations across North America.

According to the company, the Chapter 11 cases involve only certain U.S. operations and exclude its international operations, UPG Electrical, and its subsidiaries.

Note: Chapter 11 allows businesses to reorganize their debts while continuing operations under court supervision. A Chapter 11 filing does not necessarily mean that a business is closing. For additional information, readers are encouraged to contact the business directly.

Overview of the Filing

According to PR Newswire, UPG Enterprises LLC is using the bankruptcy to streamline the sale of some or substantially all of the affected businesses and assets. The company plans to pursue the sales as going-concern transactions, which could allow the businesses to continue operating while potential buyers are identified.

The press release shows that the company has started looking for buyers for its assets and expects the Chapter 11 process to bring in more potential buyers. Under a process contemplated by Section 363 of the U.S. Bankruptcy Code, the company will solicit competing bids from interested parties, subject to court approval.

The company said it intends to complete the sale processes within 60 days, subject to court approval.

John Sordillo, UPG’s chief restructuring officer, said the company is pursuing going-concern sales to maximize value for stakeholders. According to Sordillo, the free-and-clear sales could allow the assets to receive future investment under new ownership. The company also expects to preserve its relationships with customers, employees, and partners during the process.

UPG Enterprises LLC submitted its petition on September 22, 2026. Case records on PACER show that John Sordillo, the company’s authorized representative, signed the petition before it was filed.

Pacermonitor shows that several affiliated entities filed separate petitions and requested joint administration of their cases.

According to its LinkedIn, UPG Enterprises LLC is a manufacturing company that operates a group of businesses centered on metals, distribution, manufacturing, and logistics. While the company is headquartered in Oak Brook, Illinois, it has multiple locations across North America. Specialities include metals, steel, trucking, transportation, logistics, acquisitions, and family office activities.

The company was founded in 2014 by two families with multi-generational experience in various industries.

Company Arranges Up to $6.1M in Financing

As part of the Chapter 11 proceedings, UPG Enterprises LLC expects to access up to $6.1 million in debtor-in-possession financing. This funding from Firehorse Capital LLC is subject to court approval and is aimed at supporting the restructuring and sale process. The company’s operating subsidiaries also expect to use cash generated from their businesses to fund current operations.

The company has filed customary “First Day” motions to support continued operations during the proceedings. These include payment of employee wages and benefits and meeting customer and vendor commitments.

Highlights from the Petition

A September 22 omnibus written consent from the company’s governing bodies formally authorized the Chapter 11 filings and related restructuring actions. The consent appointed Thomas J. Allison as an independent manager and sole member of a special committee. Allison will oversee bankruptcy-related matters for several UPG affiliates under the terms of the consent.

The consent also authorized the company to enter into the DIP financing arrangement with Firehorse Capital. In addition, it gave company officers authority to market, negotiate, and sell some or substantially all of the affected business assets.

The document further approved the retention of Morris, Nichols, Arsht & Tunnell LLP as bankruptcy counsel, Vedder Price, P.C. as local counsel, and GlassRatner Advisory & Capital Group, LLC as financial advisor. SC&H Capital is the investment banker and Epiq Corporate Restructuring, LLC is the claims and administrative agent.

The company also said it is being advised by Teneo for strategic communications.

Court records include a consolidated list of creditors with the largest unsecured claims. Some of the creditors on this list are Promet Steel, Inc., Worthington Steel Company, Thompson Coburn LLP, and others.

A summary of the Chapter 11 petition is shared here:

  • Filing Date: September 22, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of Illinois
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11
  • Case Number: 26-15734
  • Estimated Assets: Between $1,000,001 and $10 million
  • Estimated Liabilities: Between $10,000,001 and $50 million
  • Estimated Creditors: Between 50 and 99

As the case continues, the company is expected to keep working with its employees, customers, vendors, and potential buyers throughout the process.

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