US Steel Canada revealed in a court document supporting its request for an extension of protection from its creditors that it has been working since mid December to sell off “surplus” land in Hamilton.
As part of a discussion of what he has been doing to get the struggling company back on its feet, chief restructuring officer Mr Bill Aziz said in an affidavit the company has started an “organized” process to sell land in Hamilton, with a January 22nd deadline for filing expressions of interest.
Mr Aziz said that “In the meantime, prompted in part by inquiries from interested third parties, USSC in consultation with Rothschild (the company’s financial adviser) and the [court-appointed] monitor, determined that it would be useful to start an organized process to solicit expressions of interest in connection with the possible acquisition of the land owned by USSC in Hamilton.”
He said that “Currently, a significant portion of the land is not used by USSC and is surplus. More generally, there may be a unique opportunity for USSC to realize the value of its extensive land holdings around Hamilton Harbour in a manner that would not preclude the continued operation and/or sale of its coke ovens, iron and steel making assets and finishing lines located at Hamilton Works.”
He added that if one or more sufficiently attractive offers are received a land sale could be completed as part of a broader sale of the troubled Hamilton operation.
Buyers who have expressed an interest in the land have been required to sign nondisclosure agreements and have been provided confidential information to help make their decisions.
One potential buyer of harbour front land is the Hamilton Port Authority. The authority has already expressed public interest in acquiring unneeded Stelco land and has a successful history of reviving former factory sites into new employment land.
Source – The Spec
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