Sharon Steel Corp. Files for Bankruptcy

Sharon Steel Corp. filed for protection from creditors Friday under Chapter 11 of the federal bankruptcy laws, the latest steelmaker to seek court refuge because of heavy debts and slumping business.

The filing, which listed assets of $478 million and debts of $742 million, occurred with little more than an hour left before a noon deadline set by a major creditor for Sharon Steel to redeem $96 million in corporate bonds that went into technical default in March, 1985.

Sharon Steel, controlled by financier Victor Posner, is the nation’s 12th-largest steel producer. It lost nearly $62 million on sales of $533 million through three quarters of 1986.

The bankruptcy announcement from Posner’s Miami headquarters was a blow to 2,200 anxious United Steelworkers members at the Victor Posner Works in Farrell, Pa.

“We’re shocked,” said Howard Clark, head of the union there.