Canadian Aluminum Firm Attributes Bankruptcy to Trade Conflict Challenges

A recent report from the Canadian Press reveals that Sinobec Group Inc., an aluminum trading company, has declared bankruptcy in both the U.S.and Canada, citing the American trade war as a significant factor in its financial downfall.

Sinobec specializes in facilitating transactions for aluminum ingots and finished products such as construction materials and decorative items. The company filed for bankruptcy protection on May 27 in federal court located in Illinois.

For nearly two years, Sinobec had been negotiating wiht creditors after defaulting on a loan. According to Zhong Li, the company’s CEO, they enlisted Alvarez & Marsal to assist with restructuring approximately $103 million of their debt. Fortunately for them, lenders initially agreed to hold off on any drastic measures against the firm.

However, tariffs introduced by President Trump severely impacted Sinobec’s operations. “The trade war has laid bare our vulnerabilities,” stated Philippe Jordan from PricewaterhouseCoopers, who is advising on their restructuring efforts.“Collections from significant accounts have come to a standstill due to disruptions within our supply chain.”

Sinobec stands out as one of the first companies openly attributing its bankruptcy woes directly to Trump’s trade policies. Analysts anticipate that manny more businesses—especially retailers and importers reliant on chinese goods—will face similar challenges later this year.

In april alone, Trump imposed steep tariffs of 145% on imports from China; although these were later reduced to 45%, it was too little too late for Sinobec since costs remained prohibitively high compared to market standards.

The company sources aluminum globally—from nations like China, Turkey, and India—but primarily sells within North America where over 40% of its clientele resides in the U.S., according to court documents.

Prior to seeking legal protection from creditors,Sinobec made cuts across its workforce and slashed salaries significantly.Currently employing 76 individuals at locations in Montreal and florida, their assets are estimated at around $232 million.

The firm generates annual revenues between $600 million and $800 million while carrying debts close to $170 million owed mainly to a banking consortium led by Bank of Montreal.

While navigating through bankruptcy proceedings , Sinobec aims at finding potential buyers as part of efforts towards repaying creditors . A spokesperson declined further comments regarding ongoing matters . span > p > The case is registered under Sinobec Group Inc.,number 25-80689 ,at U.S Bankruptcy Court for Northern District Illinois . span > p > div >