Sale of Slater's Hamilton specialty bar factory approved

There was a little bit of relief for Hamilton's beleaguered steel industry, after a bankruptcy court on Monday approved Slater Steel's $15.4 million sale of its Hamilton specialty bar factory to a U.S. investment fund.

Delaware Street Capital, a U.S. fund specializing in distressed assets, earlier this month agreed to pay about $15.4 million in cash for the company, a unit of insolvent Slater Steel.

Ontario Superior Court judge James Farley, approved the sale on Monday.

The move will save about 275 jobs in Hamilton.

Slater Steel is one of three Canadian steel companies to have become insolvent in the past six months. The other two are Hamilton-based Stelco, Canada's biggest steel maker, and Ivaco of Montreal.

Delaware Street is also assuming about $24 million in pension and medical benefit liabilities.

It follows the recent sale of Quebec's Sorel Forge, another unit of Slater, to A Finkl & Sons of the U.S., for approximately $41 million.

Hamilton Specialty Bar makes carbon and alloy steels for use in auto parts including engines, suspension systems and drive trains.