Company Seeks Financing To Buy Steel Mill

A bankruptcy judge has given an Ohio-based company less than 90 days to complete plans to purchase Michigan Specialty Tube.

R&K Holdings bought the extra time on Friday with a $200,000 refundable security deposit. R&K is working to get financing for the 325,000-square-foot plant.

Vision Metals Inc., the mill's Ann Arbor-based parent company, filed for bankruptcy in November 2000 and has been seeking a buyer for the plant. Without a sale, the courts will sell off the mill's assets to pay its $46.8 million debt.

R&K hopes to restart operations at the facility.

Michigan Specialty Tube Chief Financial Officer Bob Bassman said he's hopeful that the sale will go through.

"Things have been up and down and all over the place so many times, you hope this isn't another false start," said Bassman, who is one of just 11 employees remaining at the plant.

One purchase offer from Richard Burkhart, of Cleveland, fell through and ended up in court. In December, Burkhart sued to recover a $200,000 deposit. The company has countersued for breach of contract.

Another investor, Florida-based Eagle Industries Inc., pulled out of the bidding process in early April because of financing problems.

R&K signed a draft purchase agreement with the plant for less than the $4.2 million asking price. Kelly and Bassman declined to discuss specific sale terms.