Stelco sale of Welland Pipe U&O Mill approved

By Caroline Salls

Pittsburgh, May 4 - Stelco Inc. said the Ontario Superior Court of Justice approved the sale of Welland Pipe's U&O Mill to Grinolet Inc., according to a company news release.

Although the price portion of the purchase and sale agreement has been sealed until the transaction closes, the release said the price is more than the independent liquidation appraisal value provided by Danbury Sales Inc.

The court-appointed monitor had recommended the sale be approved on the grounds that Stelco adequately canvassed the market for prospective purchasers, the purchase price was fair and commercially reasonable and the sale represented the best recovery for Welland Pipe stakeholders.

Welland Pipe's operations were closed in March 2003 because of the lack of demand for very large diameter pipe.

Stelco, a Hamilton, Ont., steelmaker, filed for protection under the Companies' Creditors Arrangement Act on Jan. 29, 2004.

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