Slater Steel accepts revised Delaware Street Capital offer for Hamilton mill

By Jeff Pines

Washington, March 8 - Slater Steel Inc. said it accepted a sweetened offer of $16.95 million for its Hamilton specialty bar mill from the $15 million Delaware Street Capital LP was offering.

Delaware Street will also pick up $24 million in pension obligations and retiree health-care costs.

The investment firm said it is now contacting Slater's customers to confirm orders and discuss future needs.

"The work ahead will be challenging. Restoring this plant to profitability and succeeding in the long term will require a concerted effort by all. Now everyone is working, not just to stave off liquidation, but to implement a new business model which Slater employees developed collaboratively with us," said Delaware Street director Gary Katz in a news release.

The Hamilton facility produces special bar quality carbon and alloy rounds and flats used in automotive components.

Slater Steel filed for protection under the Companies' Creditors Arrangement Act on June 2, 2003. Its case number is 03-CL-5028.

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