RathGibson Inc. announced on July 13 that it has begun reorganization proceedings under Chapter 11 of the United States Bankruptcy Code. In a press statement, President/CEO Mike Schwartz said demand for its specialty pipe and tube products was down 50% from 2008’s record-setting levels, and court papers listed the company’s total assets at $305.1 million and total debt of $319.2 million. Court papers asserted that the company sought relief after its bank cut access to a line of credit.

Schwartz said the “reduction in demand combined with our leveraged position necessitates this action. We will emerge from this process stronger than ever.” He emphasized that the Chapter 11 filing should have no impact on day-to-day operations.

The company reported revenues for its fiscal year ended Jan. 31 at $324 million, down 7% from $350 million in the company’s fiscal year that ended Jan. 31, 2008.