Capco steel facing financial problems

PROVIDENCE, R.I. (WPRI) - It appears a well-known Rhode Island based steel company is struggling financially.

The Providence Journal is reporting that Capco Steel is in the midst of what's called an "orderly wind down."

The Economic Development Corporation is also involved.

They provided Capco Steel with a $5 million loan guarantee in March, 2010.

There is still $4.6 million outstanding on that loan.

That means tax payers may be on the hook for that amount, though EDC officials say they can sell off equipment to offset any losses.

Dozens of workers were shut out of the building last week.

Capco's CEO told Eyewitness News on Friday that employees would return to work this week, and they are still in business.