Court process removes controversial clause that could reduce buyer interest in steel company
CBC News Posted: Apr 02, 2015 2:43 PM ET Last Updated: Apr 02, 2015 2:43 PM ET
The hunt for buyers of U.S. Steel's Canadian operations and assets can go ahead after a judge Thursday approved a compromise reached in the U.S. Steel sale process. The change removed a clause in the company's plan to sell its assets that the province and workers found problematic.
The clause had the potential to make the process less conducive to bidders who may want to buy the Hamilton and Nanticoke plants and would set the stage for the U.S. Steel parent company buying the Canadian plants.
"From my perspective it's good to see that the sales process is finally starting," said president-elect of steelworkers union Local 1005 Gary Howe. "We know that there are people who are interested in making steel in Hamilton."
Howe said the judge in Thursday's proceedings congratulated the parties on reaching an agreement at "the 10-yard line" of the bankruptcy process.
U.S. Steel Canada has already been trying to sell 813 acres of polluted industrial property on the Hamilton Harbour. This motion would encompass that but also set the stage to sell the coke ovens and steel production plants and equipment in both Hamilton and Nanticoke, on Lake Erie. The company conducts most of its steel-making business from the two plants.
U.S. Steel sought bankruptcy protection under the Companies' Creditors Arrangement Act last September, citing years of losses totalling some $2.4 billion since 2009. The company's goal is to sell its Canadian operations by the end of October 2015.
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