Even though a major hurdle has been overcome in a deal to sell U.S. Steel Canada — a business expert says the actual sale is still far from complete.
The PARENT company in Pittsburgh has announced it has agreed in principle with the deal to sell the Hamilton and Lake Erie facilities to Bedrock Industries — a New York Investment firm.
But McMaster business professor, Marvin Ryder, says there’s still no word on how Bedrock is going to cover the former Stelco’s debt.
US Steel in Pittsburgh is the largest creditor, with secured claims of 118 million dollars and 2 billion dollars in total.
The retirees are also on the creditor list.
The pension fund is owed almost 850 million dollars.
Ryder says the bankruptcy court judge will need to be assured that the accumulated debts are covered before approving the deal.
He says if Bedrock can’t satisfy the judge that it can cover those debts in some way over time — he could still liquidate the company and force it into bankruptcy.