Even though Hernic Ferrochrome hasn’t be sold, it continues to make news. The latest is that the company’s receiver has reportedly agreed to two 2018 supply contracts that covers a large percentage of the plant’s production. This signals that during the sales process, Hernic will be a going concern and the plant will not be closed.
However, analysts are wondering if that plant is sold, will the new owner be obligated to assume the two sales contracts? “If I was the buyer, there is no way I would agree to the contracts unless they are really great,” one competitor said.
The two buyers were tipped to be ArcelorMittal and DEW-Stahl.