Rouge Industries, Inc. announced that its board of directors will recommend that the United States Bankruptcy Court for the District of Delaware approve the sale of substantially all of the assets of the Company to Severstal, Russia's second largest steelmaker.
In the auction of the company assets that concluded late last week, Severstal emerged with a top bid, valued at $285.5 million, inclusive of the court approved breakup fee and expense reimbursement. Severstal and US Steel were the auction's sole participants.
The company reported that the matter will now move to Wilmington, Delaware, where the final sale hearing is scheduled today, December 22, 2003.
"We look forward to the successful completion of the sale," said Carl L. Valdiserri, chairman and chief executive officer of Rouge Industries. "Our many loyal and valued stakeholders are anxious to know the path our business will take going forward. We hope that the sale to Severstal will provide all of our stakeholders a brighter outlook and a more secure future."
On October 23, 2003, Rouge Industries, Inc., as well as its subsidiaries, filed for bankruptcy protection this past October.Latest from Recycling Today
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