Court rules U.S. Steel Canada can sell Hamilton, Nanticoke mills

Despite opposition from the union representing active and retired steelworkers, a court ruled Tuesday that U.S. Steel Canada will be able to put its Hamilton and Nanticoke mills up for sale.

Union lawyer BarbaraWalancikconfirmed the ruling Tuesday night. The union had filed arguments opposing the sale which was proposed by the newly-created U.S. Steel Canada.

The union had opposed the timing of the sale offering, arguingthe AmericanU.S. Steel (USS) which alsowants liquidation put on the table as an optionwasmeddling in the sale process of the Canadian operations (USSC)in order to run the Canadian operation into the ground.

The Canadiancompany is now set to enter the sale and investment solicitation process for the second time. The new processwould give it until Oct. 31 to sell to off all or parts of the production Hamilton andNanticoke. And according to United Steelworkers union reps, there are at least four companies interested in buying.

The union had argued that the American company has shown itit isn'tinterested in efforts to "revitalize" the steelmaking operations at Hamilton and Nanticoke.

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However, one compromise was reached. The union will be able to put together its own restructuring plan to be considered alongside other offers in the sale process,Walanciksaid.

The steelworkers say they've been working with two formerStelcovice presidentson a restructuring plan to keep the company going, but saidputting the plants up for sale before such a plan could take root is premature.

Tuesday's sale motion wasa second attempt at finding a willing buyer, a move agreed to lastOctober, when U.S. Steel Canada company severed from its American parent company. That deal halted the first and ultimately unsuccessful attempt to find a buyer. Now, the new processUSSC would get non-binding letters of interest from companies by Feb. 29.

The province also opposedUSSC's motion to put the mills up for sale.

The province said it wants to see a "fair and reasonable" sales process that "properly and robustly canvasses the market," according to a document filed in court on Friday. The proposed sale process "does not consider that the [sale]in the form being sought will do so."

USSC will also start a six-day claims trail on Thursday, when the court will determinewhether U.S. Steel is owed $2.2 billion. That decision will determine the impact the debt has on the restructuring process.