Ottawa ? An Ottawa steel plant that employs about 150 people likely will reopen next week, an attorney for the company said Friday, one day after a bankruptcy filing closed the plant.

Kansas City, Mo.-based Havens Steel Co., a design and fabrication company struggling with the rising price of scrap steel, filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code on Thursday.

The filing came after its main lender, Commerce Bank of Kansas City, sought to seize assets in Ottawa, where Havens has a steel fabrication plant.

“We gave them a deadline and they were unable to meet it,” said Benjamin Mann, an attorney for the bank.

The company has fixed-cost contracts on large commercial projects across the country, and has been losing money on many of them as steel prices rise almost every week. Commerce, which sought repayment last month, was owed about $13 million, since reduced to $11.7 million.

But Pete Smith, a bankruptcy attorney representing Havens, said he was optimistic the Ottawa plant would reopen early next week. He said he thought the company would reopen the plant with roughly the same number of employees it had prior to the closing.

“I think for the time being it will be the same size of work force,” Smith said. “They have the same amount of business to do next week as they did this week. They have to have the people to do it.”

The company, which makes a variety of steel products for bridges and other construction projects, received approval Friday to pay its existing payroll, Smith said. Smith said the company was optimistic of creating a reorganization plan that would allow it to remain in business.

“They didn’t file a Chapter 7 to liquidate the company. They filed a Chapter 11 to reorganize,” Smith said. “There are a lot of problems to be tackled out there, but the best way to eat an elephant is one bite at a time.”

Ottawa business leaders said they were watching the situation at the company closely.

“That would be quite a few jobs for us to lose,” said Steven Iwersen, chairman of the Ottawa Chamber of Commerce.

Iwersen said community leaders were disappointed but not necessarily surprised by the developments at the plant because they were aware of the problems in the steel market.

“We’re pretty optimistic folks,” Iwersen said. “Our hope would be that some things change for the better in the steel industry and the company would continue to be a major employer.”

The abbreviated Chapter 11 petition filed Thursday did not list total liabilities or assets, but said the company owed about $21 million to its 20 largest unsecured creditors.

Meps International, a steel consulting firm, reported last month that the price of hot-rolled coil steel hit $482 in February, up 66 percent from June. Havens’ fixed-cost contracts have left it vulnerable to the rapidly rising prices.

The financial troubles caused several large projects being constructed by Havens to shut down. On Wednesday, 40 steelworkers at the Iowa Events Center in Des Moines, a $218 million arena and exhibition hall project, were sent home after Havens was unable to meet payroll. Havens has a $15.5 million structural steel contract at the center.

Steel fabrication work on The Kansas City Star’s $200 million printing plant project in downtown Kansas City, Mo., also stopped Wednesday.

Havens, a privately held company founded in 1919, is thought to have about 700 employees. Hoover’s Online, a business reporting service, estimated its sales in 2002 at $133 million.

The Associated Press contributed to this story.