Steel Mills

39 Potential Bidders for US Steel Canada

June 7, 2015

Phase 1 in the sale of US Steel Canada has been completed. Thirty-nine potential bidders for the USSC assets have signed non disclosure agreements, according to the latest report by court monitor, Alex Morrison.

Multiple letters of intent were received indicating interest in:

    a. acquiring on or both of Lake Erie Works and Hamilton Works on a going concern basis based on present operations;
    b. acquiring all or part of the land at Hamilton Works, some of which included the plant and equipment and/or the land at Lake Erie Works;
    c. acquiring certain specifically identified assets of Hamilton Works; and
    d. investing by way of new secured debt.

In Phase 2, USSC and the financial advisor, in consultation with the court monitor, will review the letters to determine which parties have a bona fide interest in the purchase and the financial ability to consummate a transaction. A bidder cannot be eliminated without consent of the Monitor.

Letters to the approved bidders are expected to sent shortly and will set the procedure and timeline for submission of formal binding offers.