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 subsidiarys 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 subsidiarys 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., Stelcos 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.