Gulf Chemical, Bear Metallurgical seek OK of $3 million lead bid

By Caroline Salls

Pittsburgh, Aug. 5 – Gulf Chemical & Metallurgical Corp. and Bear Metallurgical Co. requested court approval to designate SiderAlloys North America, LLC as the stalking horse bidder for Bear’s assets, according to a motion filed Thursday 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 initial competing bid increment will be $200,000. Bids at auction will proceed in increments of at least $100,000.

A hearing is scheduled for Aug. 9.

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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