All may not be lost for steelmaker Hamilton Specialty Bar (HSB). Despite a key deadline passing on March 26, talks with a potential new owner continue.
A Toronto bankruptcy court imposed the deadline for a deal with the potential owner of HSB. That deadline having passed, the door is open for American Iron and Metal (AIM), the successful liquidation bidder, to begin liquidating HSB.
However, United Steelworkers of America (USW) Local 4752 organizers say talks are still on-going with the potential buyer, Keshav Lall and KAL Advisory Partners.
Local 4752 President Mickey Mercanti says “it will take weeks for the recycler to liquidate the company. So, there is still time for a deal to be struck” and he’s optimistic it will happen.
Mercanti says a key factor in the process should be known soon.
The union president says, while there is a “solid bid, it really depends are retaining agreements with major customers of Specialty Bar. We should know shortly if that is going to happen or not.”
He adds there is a good business plan and KAL has experience in steelmaking, not to mention pockets deep enough to keep the operation going until the plant can make money, in about three years time.
After an ownership deal is reached comes the question of striking a labour agreement with the USW local. Mercanti has a good feeling about that, too.
He says “there have been several meetings between the union and KAL and while there’s no specifics, yet, I trust them. They (KAL) seem to be fair people. I don’t think they are going to run us into the ground. First thing out of our mouths was, ‘Take care of our pensioners.’ They don’t have any benefits at all.”
HSB has 200 workers and 400 retirees.
The Sherman Avenue North plant went into receivership Jan. 8.
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