A Milwaukee, Wisconsin, newspaper has reported that St. Louis-based Alter Trading Corp. has emerged as a bidder for the assets of United Milwaukee Scrap.
The Nov. 12 report from the Journal Sentinel refers to United Milwaukee Scrap LLC as a “Milwaukee scrap metal business that has run into financial trouble.” The company and its subsidiaries had previously filed for protection from creditors.
According to the Journal Sentinel, Alter has agreed to purchase United’s assets for about $6 million, and the company indicates to the newspaper that it plans to retain “substantially all” United employees. UMS’ scrap operations include five locations in Wisconsin and one in Minnesota. Alter Trading operates several dozen locations throughout the Midwest, including several facilities in Milwaukee.
A proposed order naming attorney Rebecca DeMarb as receiver is pending before Circuit Judge David Swanson. The Journal Sentinel reports that DeMarb has asked Swanson to approve procedures for an auction of UMS’ assets.
If the auction goes forward, Jay Robinovitz, CEO of Alter Trading, confirms that his company would be the “stalking horse bidder,” meaning other buyers cannot submit lower competing offers.
If outbid, Alter would receive a $750,000 breakup fee, according to the newspaper.
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