U.S. Steel Canada Said to Draw Interest From ERP, Other Suitors – by Scott Deveau and Sonja Elmquist (Bloomberg News – February 19, 2016)

http://www.bloomberg.com/

U.S. Steel Canada Inc., the former unit of U.S. Steel Corp. under creditor protection since 2014, has drawn interest from ERP Compliant Fuels and Essar Steel Algoma Inc., people with knowledge of the matter said.

ERP Compliant has submitted a bid for the steel operations in Hamilton and Nanticoke, Ontario, and Essar Steel and several others are expected to submit offers by the Feb. 29 deadline, said the people, who asked not to be identified because the information is private. The assets are valued at about $1.5 billion, including debt, the people said.

“The sales and investment solicitation process continues under the supervision of the court and it would not be appropriate for U.S. Steel Canada to comment outside of the process,” said Joel Shaffer, a spokesman for the company.

A representative for ERP didn’t immediately respond to a request for comment. Brenda Stenta, a spokeswoman for Essar Steel Algoma, declined to comment.

ERP Compliant is run by Tom Clarke, a Virginia hospital executive and climate change activist. In addition to bidding on U.S. Steel Canada’s operations, Clarke has been scooping up mines from bankrupt coal producers Patriot Coal Corp. and Walter Energy Inc., betting he can help revive the struggling Appalachian region by selling coal bundled with carbon credits accrued by planting trees — something he thinks will appeal to utilities struggling to meet new environmental standards.

For the rest of this article, click here: http://www.bloomberg.com/news/articles/2016-02-19/u-s-steel-canada-said-to-draw-interest-from-erp-other-suitors

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