Slater Steel's Hamilton Specialty Bar workers, Delaware Street reach agreement

New York, Feb. 20 - Delaware Street Capital said it expects to buy Slater Steel Inc.'s Hamilton Specialty Bar facility after reaching a deal with local 4752 of the United Steelworkers of America.

Delaware Street said that under the tentative agreement one of its affiliates would purchase substantially all of the assets of the facility and keep the mill producing specialty steel products.

Slater Steel had previously obtained permission from the Ontario Superior Court of Justice to wind down the Hamilton Specialty Bar facility.

"We hope the union membership will now ratify this agreement and work with us to grow this business," said Gary Katz, director of Delaware Street.

"We're also optimistic that all stakeholders will recognize the value for the workers, the mill and the community in supporting the sale of a going concern."

Delaware Street, a value-oriented investment fund, recently led the refinancing of $175 million of bank debt for Mississippi Chemical Corp.

Slater Steel also said it has received a higher bid for its Sorel Forge subsidiary, located in Sorel-Tracy, Que.

The offer, from a subsidiary of A. Finkl & Sons Co., is better than the previously announced agreement with the Tricap Restructuring Fund.

Slater said it intends to accept the offer from Finkl, subject to court approval. It will pay Tricap a $1.2 million break-up fee.

Slater Steel is a Mississauga, Ont., mini mill producer of specialty steel products currently operating under the Companies' Creditors Arrangement Act.

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