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Hamilton Specialty Bar in receivership

Steel News - Published on Wed, 17 Jan 2018

Image Source: CBC News
CBC News reported that nearly 200 steelworkers expecting to go back to work after an expected Christmas break instead found out abruptly that their company, Hamilton Specialty Bar Inc, had shut down. The first week of January, company executives told the union, United Steelworkers Local 4752, that they had a "cash flow problem" and wouldn't be running, said local president Mickey Mercanti.

By Jan 8, the papers had been filed for the company to enter a receivership, where a third party assumes control of the company while it is in court-supervised bankruptcy protection or restructuring. Court documents say the company was in default on a $27.6 million loan with Wells Fargo as of the end of December.

The receiver is expected in Toronto court on Thursday to discuss a plan to sell the company.

Mercanti said the 170 unionized workers are back in the melt shop and mill, cranking out orders for the company's top three clients left in the lurch by the news of the shutdown.

Hamilton Specialty Bar used to be owned by Slater Steel and was purchased by a partnership of two American capital firms a decade ago, when Slater was in bankruptcy court.

Source :

Posted By : Nanda Koijam on Wed, 17 Jan 2018
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