Gulf Chemical, Bear Metallurgical get approval of lead bid designation

By Caroline Salls

Pittsburgh, Aug. 9 – Gulf Chemical & Metallurgical Corp. and Bear Metallurgical Co. obtained court approval to designate SiderAlloys North America, LLC as the stalking horse bidder for Bear’s assets, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

SiderAlloys has agreed to pay $3 million for Bear’s assets, subject to the receipt of higher and better bids.

The stalking horse bidder will not acquire Bear’s cash and cash equivalents or pre-closing accounts receivable, which will be left behind for the company’s estate.

If SiderAlloys is not ultimately the winning bidder, Bear will reimburse up to $100,000 of its sale-related expenses. The minimum cash overbid amount will be $150,000 more than the stalking horse bid. Bids at auction will proceed in increments of at least $75,000.

Competing bids are due by 4 p.m. ET on Aug. 31. An auction will be held on Sept. 7, if necessary.

The sale hearing is scheduled for Sept. 13.

Gulf is a Freeport, Texas-based subsidiary of Eramet, a Paris-based mining and metallurgical global producer of alloying metals. Gulf filed bankruptcy on June 14 under Chapter 11 case number 16-22192.

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