Bedrock Industries moves one step closer to buying Stelco

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After looking through nearly 800 candidates to purchase Stelco and remove it from creditor protection, Bedrock Industries is officially the successful party to hold exclusive negotiating rights with Stelco. It’s one step forward towards a long journey to finalizing a deal. But that doesn’t mean the Florida-based company can start setting up shop at the Hamilton harbour and Lake Erie.

The judge said locking down Bedrock would prevent the company from stepping away from talks. Also, the union will now will have more time to look over Bedrock’s offer, which they received just last Friday and have flagged serious concerns.

“There isn’t enough money in the deal for benefits and pensions being off the balance sheet is a huge issue.” Gary Howe, Local 1005 president.

Meanwhile at Queen’s Park, the Finance Minister supports the potential takeover. “The intent is not to lose a primary industry in Hamilton in Ontario and this is a way to safeguard that position and enable more opportunities in the future.”

All parties agree that this will be a complicated deal to negotiate. Stelco’s chief restructuring officer said in a statement,
“I recognize that there is likely no solution that will be viewed as perfect by all stakeholders and there remains significant work to do before there is an executable ccaa (companies creditors arrangement act) plan.”

Along with the unions, the city of Hamilton, who were upset that they were kept out of prior talks, is wondering if they’ll receive the roughly $7 million in property taxes owed by U.S. Steel. So far, that hasn’t been addressed in the deal. Stelco’s creditor protection has since been extended until March 31st 2017