TRUMPONOMICS:

Bayou Steel Group filed for bankruptcy Monday, threatening hundreds of jobs after the company ran low on cash and defaulted on its debt.

The steelmaker idled most of its operations and sought Chapter 11 protection in Delaware, it said in a statement. Close to 400 workers may be impacted by the shutdown of Bayou's plant near New Orleans, Natalie Robottom, a local government official, said.

The company sought protection from creditors after a "severe lack in liquidity" led to a default on its senior secured debt, according to the statement. Bayou, which produces steel products like reinforcing bars and beams, will offload its remaining inventory and hopes to sell its assets to a buyer who will restart operations, the company said.

Bayou Steel is "particularly vulnerable" to tariffs because it uses imported scrap metal, Louisiana Governor John Bel Edwards said in a statement following the layoffs. 

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