U.S. Steel Canada sale behind-the-scenes maneuvers have workers worried – by Kelly Bennett (CBC News Hamilton – June 28, 2016)


Steelworkers call for government intervention in sale process

Unionized steelworkers are nervously eyeing the bidders that remain in a months-long process to buy U.S. Steel Canada and take over its Hamilton and Nanticoke operations.

One bidder has reportedly been knocked out of the running to buy U.S. Steel Canada, which has been operating under bankruptcy protection through the Companies’ Creditors Arrangement Act since 2014.

A spokesman for U.S. Steel Canada said the company “won’t discuss the identity or number of participants currently involved in the process” in order to abide by a non-disclosure agreement. But spokesman Trevor Harris said the process had winnowed out at least one party due to concerns about sufficient financial strength.

“I can confirm that certain parties previously involved are no longer involved in the Sales and Investor Solicitation Process, following a conclusion that they would not be able to complete a qualified bid that could result in a going concern solution,” Harris said.

Indian-based Essar reportedly kicked out

The Hamilton Spectator reported that the party knocked out was Essar Global, a company based in India that took over Algoma Steel Inc. in Sault Ste. Marie in 2007. Essar Algoma entered bankruptcy protection under the CCAA last fall.

For the rest of this article, click here: http://www.cbc.ca/news/canada/hamilton/news/u-s-steel-canada-sale-behind-the-scenes-maneuvers-have-workers-worried-1.3656845

Comments are closed.