Going Concern	12 Months Ended
Dec. 31, 2017
Going Concern
Going Concern	NOTE 2—GOING CONCERN The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for the twelve month period following the date of these consolidated financial statements. As such, the accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern. Real Alloy’s operations in the U.S. were affected by severely tightened liquidity during 2017, due in part to constrained trade credit terms, which hindered Real Alloy’s ability to timely refinance its $305 million 10% senior secured notes due January 2019 (“Senior Secured Notes”) and to expand borrowing capacity under its Prior ABL Facility (defined below). As a holding company, Real Industry relies on the operations of its subsidiaries and external financing sources for its liquidity needs, and during the past year, the holding company’s liquidity and financial position had significantly declined. During the nine months ended September 30, 2017, we incurred net losses of $58.0 million and net cash used in operating activities was $20.6 million. On November 17, 2017 (the “Petition Date”), Real Industry, Real Alloy Intermediate Holding, LLC (“RAIH”), Real Alloy, and six of Real Alloy’s wholly owned domestic subsidiaries (collectively with RAIH and Real Alloy, the “Real Alloy Debtors,” and the Real Alloy Debtors with Real Industry, the “Debtors”), filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Debtors’ Chapter 11 cases are being jointly administered and procedurally consolidated in the Bankruptcy Court under the case of Real Industry, Case No. 17-12464 (KJC), and the caption “In re: Real Industry, Inc., et al.,” (with respect to Real Industry only, the “RI Chapter 11 Case,” with respect to the Real Alloy Debtors, the “RA Chapter 11 Case,” and together the “Chapter 11 Cases,” or the “Bankruptcy Proceedings”). See Note 3—Liquidity and Bankruptcy Proceedings for further details on the Company’s plans. Management concluded that the conditions described above, including the default on Real Alloy’s Senior Secured Notes and the Prior ABL Facility, and the Bankruptcy Proceedings, raise substantial doubt about our ability to continue as a going concern. A significant factor in mitigating the substantial doubt about our ability to continue as a going concern is our ability to emerge from bankruptcy as a recapitalized entity or recapitalize the Company through other means. Our mitigating plans include the Section 363 Sale of Real Alloy and the Real Industry plan of reorganization filed by the Bankruptcy Court (the “RI Plan”). There can be no assurances regarding the Company’s ability to successfully develop, obtain approval for, and have confirmed the RI Plan, an alternative plan of reorganization or an alternative restructuring transaction, including a sale of all or substantially all of our assets, which satisfies the conditions of the Bankruptcy Code and is authorized by the Bankruptcy Court. Similarly, there can be no assurance of Real Alloy’s ability to close the Section 363 Sale. As a result of the uncertainty surrounding our Chapter 11 proceedings, there is substantial doubt about our ability to continue as a going concern.

NOTE 2—GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for the twelve month period following the date of these consolidated financial statements. As such, the accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern.

Real Alloy’s operations in the U.S. were affected by severely tightened liquidity during 2017, due in part to constrained trade credit terms, which hindered Real Alloy’s ability to timely refinance its $305 million 10% senior secured notes due January 2019 (“Senior Secured Notes”) and to expand borrowing capacity under its Prior ABL Facility (defined below). As a holding company, Real Industry relies on the operations of its subsidiaries and external financing sources for its liquidity needs, and during the past year, the holding company’s liquidity and financial position had significantly declined. During the nine months ended September 30, 2017, we incurred net losses of $58.0 million and net cash used in operating activities was $20.6 million. On November 17, 2017 (the “Petition Date”), Real Industry, Real Alloy Intermediate Holding, LLC (“RAIH”), Real Alloy, and six of Real Alloy’s wholly owned domestic subsidiaries (collectively with RAIH and Real Alloy, the “Real Alloy Debtors,” and the Real Alloy Debtors with Real Industry, the “Debtors”), filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Debtors’ Chapter 11 cases are being jointly administered and procedurally consolidated in the Bankruptcy Court under the case of Real Industry, Case No. 17-12464 (KJC), and the caption “In re: Real Industry, Inc., et al.,” (with respect to Real Industry only, the “RI Chapter 11 Case,” with respect to the Real Alloy Debtors, the “RA Chapter 11 Case,” and together the “Chapter 11 Cases,” or the “Bankruptcy Proceedings”). See Note 3—Liquidity and Bankruptcy Proceedings for further details on the Company’s plans.

Management concluded that the conditions described above, including the default on Real Alloy’s Senior Secured Notes and the Prior ABL Facility, and the Bankruptcy Proceedings, raise substantial doubt about our ability to continue as a going concern. A significant factor in mitigating the substantial doubt about our ability to continue as a going concern is our ability to emerge from bankruptcy as a recapitalized entity or recapitalize the Company through other means. Our mitigating plans include the Section 363 Sale of Real Alloy and the Real Industry plan of reorganization filed by the Bankruptcy Court (the “RI Plan”). There can be no assurances regarding the Company’s ability to successfully develop, obtain approval for, and have confirmed the RI Plan, an alternative plan of reorganization or an alternative restructuring transaction, including a sale of all or substantially all of our assets, which satisfies the conditions of the Bankruptcy Code and is authorized by the Bankruptcy Court. Similarly, there can be no assurance of Real Alloy’s ability to close the Section 363 Sale. As a result of the uncertainty surrounding our Chapter 11 proceedings, there is substantial doubt about our ability to continue as a going concern.