Stelco, a Plan, Pipes, Panama

Stelco, a Plan, Pipes, Panama

Legally insolvent Canadian steelmaker Stelco announced that it would seek a court order on Wednesday (May 4) approving the sale of its Welland Pipe subsidiary’s U&O Mill to Panama-based Grinolet Incorporation. Welland Pipe's operations ceased in March 2003 because of the lack of demand for very large diameter pipe. The Stelco subsidiary’s land and buildings have been put up for sale with a listing price of CA$4 million. The purchase price, which has not been disclosed, is believed to be in excess of the independent liquidation appraisal values provided by Danbury Sales Inc. Ernst & Young Inc., Stelco’s court-appointed monitor, has backed the sale on the grounds that Stelco adequately canvassed the market for prospective purchasers, the purchase price is fair and commercially reasonable, and the sale represents the best recovery for Welland Pipe stakeholders.