UPG Enterprises Files Chapter 11 With a $6.1M DIP and 60-Day Sale Plan

UPG Enterprises LLC, the Oak Brook, Illinois parent of steel service centers Lexington Steel and Maksteel, filed Chapter 11 on September 22, 2026 in the U.S. Bankruptcy Court for the Northern District of Illinois to sell some or substantially all of its U.S. businesses.

Why it matters: UPG Enterprises expects to complete its asset sales within 60 days, so suppliers should review open UPG invoices now.

UPG Enterprises lists $10 million to $50 million in liabilities

UPG Enterprises and 17 affiliates filed under lead case number 26-15734 and asked the court to administer the cases jointly.

• UPG Enterprises’ petition estimates $10 million to $50 million in liabilities against $1 million to $10 million in assets, owed to 50 to 99 creditors.
• The affiliated debtors include Lexington Steel LLC, Maksteel USA LLC, Chicago Steel Holdings LLC and Metalex LLC.
• UPG says UPG Electrical and its international operations are outside the Chapter 11 and continue to operate normally.

Who are UPG Enterprises’ largest unsecured creditors?

UPG’s list of top unsecured claims includes two steel suppliers and a law firm.

• Promet Steel, Inc., Worthington Steel Company and law firm Thompson Coburn LLP appear among UPG’s largest unsecured creditors.
• UPG’s petition indicates that funds will be available for distribution to unsecured creditors.
• UPG served about 5,000 customers from 10 facilities with more than 200 delivery trucks after it acquired Lexington Steel in September 2020.

UPG’s $6.1 million DIP loan funds a 60-day asset sale

UPG is marketing its assets to interested parties and plans to sell them free and clear through a court-supervised Section 363 process.

• Firehorse Capital LLC has committed up to $6.1 million in debtor-in-possession financing, subject to court approval.
• UPG expects to complete the sales within 60 days, subject to court approval, and did not name a stalking horse bidder when it announced the filing.
• UPG filed first-day motions to keep paying employee wages and benefits and to honor vendor commitments during the case.

What to do now

UPG’s suppliers can start by reviewing the recovery options available to creditors in Chapter 11.

1. Pull every open UPG invoice with its delivery date and proof of delivery.
2. Ask counsel which of your claims may qualify for reclamation under Section 546(c) or priority under Section 503(b)(9), and what deadlines apply.
3. Watch the Epiq case site for bid procedures, contract assumption and cure notices, and the claims bar date.
4. Notify your credit insurer of the filing and contact Securitas to confirm your policy’s claim requirements; coverage is subject to credit limits, notification requirements, and policy terms in place at the time of the filing.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.