Multiple bids submitted for Canada's Hamilton Specialty Bar, which Wells Fargo placed in involuntary receivership January 8, are aimed at buying the plant and continuing to operate it as a going concern, a United Steelworkers union official said Thursday.
Mickey Mercanti, president of USW Local 4752 at the facility, said in the interview he knew who the bidders were, but would not identify them because the union had signed a confidentiality agreement with Ernst & Young, the court-appointed receiver of HSB.
Some 168 USW members are still working at the plant until February 20 under a special arrangement with HSB's three largest customers. The plant produces carbon and alloy steels for the automotive, heavy truck, off-road, mining, forging, cold finish and service center markets.
Mercanti said he was confident several of the bidders had the financial and operational wherewithal to keep HSB running if they were selected by the receiver and approved by Justice J. Hainey of the Ontario Superior Court of Justice in Toronto later this month.
"We're optimistic that's going to happen," he said. "This will come together in the next week. We have our bags packed for a quick trip to Toronto" to meet with the finalists before the court makes its decision.
"We're in constant contact with the receiver," he added. But Mercanti disclosed that at least five bidders also were interested only in buying HSB with the intention of liquidating it.
Other than to confirm bids were received January 26, E&Y spokeswoman Sarah Shields declined to comment about the receiver's actions.
