Slater Steel In Letter Of Intent With Delaware Street Capital

Slater Steel Inc. entered into a letter of intent with Delaware Street Capital for the sale of substantially all of the assets of Hamilton Specialty Bar.

Completion of the acquisition is subject to Slater and Delaware entering into a definitive agreement, court approval and certain other conditions.

Slater expects the transaction to close this month.

Last June Slater and its subsidiaries sought creditor protection under Canadian and U.S. legislation. To date, Slater has completed the sale of, or entered into definitive agreements to sell, the following divisions: Lemont, Fort Wayne Specialty Alloys and Sorel Forge.

Slater is a mini mill producer of specialty steel products.

Delaware Street Capital said its new offer to acquire Slater Steel’s Specialty Bar mill includes a total cash consideration of C$16.95 million, as well as an additional commitment estimated at C$24 million for employee pensions and extended health benefits for retirees.