Canadian Aluminum Trader Sinobec Files for Bankruptcy, Blaming Trump's Trade War

Sinobec Group Inc., a Canadian aluminum trader, has filed for bankruptcy in the U.S. and Canada. The company cited the American trade war as a key factor in its financial collapse. Sinobec arranges deals between sellers and buyers of aluminum ingots and finished products. For two years, Sinobec had been working with lenders after defaulting on a loan. They hired Alvarez & Marsal to refinance approximately $103 million in debt. Lenders initially agreed to avoid taking action against the company. According to court documents, tariffs imposed by President Donald Trump significantly impacted Sinobec. Restructuring advisor Philippe Jordan stated that the company was exposed to the full impact of the trade war. Significant accounts receivable collections halted as the supply chain slowed. Sinobec is among the first companies to directly attribute its bankruptcy to Trump's trade war. Experts predict a wave of restructurings in the U.S., especially among retailers and importers reliant on Chinese manufacturers. In April, the president imposed tariffs of 145% on goods from China, later reduced to 45%. Sinobec sources aluminum from countries including China, Turkey, and India. The majority of sales are in North America, with over 40% of customers in the U.S. Before filing for bankruptcy, the company had reduced staff and salaries. Sinobec employs 76 people at its headquarters in Montreal and in Florida. The company's assets are valued at approximately $232 million. It carries about $170 million in debts, primarily owed to a banking syndicate led by Bank of Montreal. Under court supervision, Sinobec will attempt to sell itself to repay creditors. A company representative declined to comment on the situation.