Rouge Industries to turn over its assets
Market sources report that Rouge Industries has recently signed an agreement to sell its all assets to Russian steel producer
Severstal. The offer price by
Severstal for the assets is $215 million.
Steel producer Rouge Industries, which is under bankruptcy protection and previously signed a letter of intent with the Russian producer, asked the US Bankruptcy Court to grant
Severstal's bid for the assets of Rouge Industries. The court objected the request, underscoring that the necessity of the Russian producer to negotiate firstly with the United Auto Workers (UAW) union, representative of Rouge, in order to conclude the deal.
US Steel, one of the partners of Rouge Industries, objected the turn over of all assets of Rouge Industries to
Severstal as the deal includes the joint venture companies of Rouge Industries, too.
Unless a bid $1 million more than the
Severstal's bid of $215 million is offered,
Severstal will be the winner of the auction.