Calumet Steel Co. will be sold at a bankruptcy court auction Nov. 14.
Privately-held MZG Associates II LLC , owned by Lansing resident Michael Z. Goich, currently has a contract to buy the company for $1.82 million.
The bankruptcy court has ordered an auction of the property to MZG or to another qualified party who bids at least that amount plus 5 percent more -- at least $1.91 million -- to cover MZG's costs for the due diligence it preformed on the property, plant and equipment.
According to local news reports, Goich intends to reopen the privately -held company which filed Chapter 7 liquidation suddenly in March.
Calumet Steel, a minimill which made steel from scrap in an electric arc furnace, produced steel bars and light shapes consumed by the agricultural, construction, lawn care and automobile and industrial machinery for manufacturing industries. The company owed its secured lender, American National Bank and Trust Co. of Chicago, about $2.5.million when it closed. The money was repaid through the collection of the company's accounts receivable and the sale of scrap and partially finished material. The sale may produce enough funds to at least partially pay off some of the company's unsecured creditors. Muster (Indiana) Times Online.