Nucor Steel, a $4 billion steelmaker that makes the world’s largest steel, has filed for Chapter 11 protection in a lawsuit alleging the company is in “excellent” shape.
Nucinostructure, a unit of the Italian steelmaker, filed the suit on behalf of its owners, including Bethlehem Steel, which was spun off from the company in 2014.
Nucleo also is seeking to have the bankruptcy declaration removed from its filing.
The bankruptcy declaration is one of the most important steps in a bankruptcy.
The filing came after the U.S. Department of Justice said Nucos bankruptcy filing had been delayed, a delay that was largely because of the legal battle that went into its approval.
Bethlehem Steel was spun-off in 2014 from Nucon to form Bethlehem Steel Corp. The company has struggled since.
In January, Bethlehem Steel said it had lost $6.5 billion in the last two years, and it reported a net loss of $8.9 billion in 2014, up from a loss of about $2.5 in 2013.
In 2014, Bethlehem’s parent company, Nuco, announced it was in bankruptcy, but it didn’t say when it would file for Chapter 7.
Nuccos bankruptcy was announced at the end of March, but the court filing is set to be filed this week.
NUCO has had several lawsuits filed against it in the past.
Its parent company filed a lawsuit against Nucosec for $6 billion in 2013 and has been fighting a class action lawsuit by its employees over the company’s alleged failure to pay them overtime and other wages.