With Steel Prices Climbing, Bankrupt Producer Gets Bids

The New York Times > Business > World Business > : “The excitement surrounding Stelco – a company that was, by its own lights, headed to the grave just a few months ago – has been prompted by a worldwide rise in steel prices driven by demand from China. That has left Stelco in the unusual position of reporting back-to-back quarterly profits, most recently a record 58 million Canadian dollars in the third quarter, while also claiming court protection from creditors.

Offsetting some of the bidding fever is the prospect that Stelco’s current shareholders, who have seen their holdings fall into penny-stock territory, may overturn the company’s bankruptcy. That could quash the bidders’ hopes of getting the company at a discount, but might set off a rally in the stock.”

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