Hamilton finds a white knight, and other fairy tales

The USW union representing workers at Canada’s Hamilton Specialty Bar threw up a Hail Mary today, asking the judge in the bankruptcy case to halt tomorrow’s sale to AIM and Triple M. The union claims it has found a potential buyer who would be willing to run the plant; AIM would scrap the plant and Triple M is buying the inventory.

The potential buyer, according to the union, emerged after numerous potential buyers looked and turned (ran) away.

However, any deal with a new buyer would be costly. AIM has a C$250,000 break fee that will have to paid by the buyer. In addition, running the plant during the bankruptcy has cost C$679,239 and for each week after the Mar. 14 date, the bill increases by approximately C$240,000 per week, also to be paid by the new buyer.

While, it is not know how much AIM was willing to pay, Triple M had the highest offer for the inventory at C$1,483,290. Finally, HSB defaulted on debt of more then C$27.5-million.

Basically, don’t bet on a white knight to save this one.

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