British Company to Buy Most of Sharon Steel
SHARON, Pa. (AP) _ A British company has agreed to buy most of the assets of Sharon Steel Corp., which filed for Chapter 11 bankruptcy protection in November 1992 and has not produced steel since then.
The purchase price was not disclosed Friday, when the deal was announced.
Caparo Steel, a company formed by Caparo Group Ltd., a privately owned, London-based company, will restart at least two of Sharon’s mills and initially rehire more than 500 former Sharon workers, said Chuck Emmenegger, president of Caparo’s U.S. subsidiary, Caparo Inc.
Emmenegger said Sharon’s court-appointed trustee, Malvin Sander, accepted Caparo’s letter of intent to buy the assets.
Sharon Steel first filed for protection from its creditors under Chapter 11 of the federal bankruptcy code in 1987 and was eventually reorganized. It made a second Chapter 11 filing in 1992.
The assets to be purchased are located in Farrell, about 60 miles north of Pittsburgh. The entire Farrell operation back in 1992 employed 2,400 steelworkers and 300 others.