Liberty Steel to buy Bayou Steel for $28 million

Liberty Steel Group said Monday it has been named as the preferred buye" for Bayou Steel in LaPlace, which was put into bankruptcy in September by its Connecticut-based hedge fund owner.

Liberty Steel said in a statement on Monday that it expects to pay $28 million, assuming it clears all the hurdles to buy the company out of bankruptcy court in Delaware. The judge overseeing the case said Monday she expects to approve the deal, pending some small changes to the agreement.

Bayou Steel was put into Chapter 11 bankruptcy at the end of September by owner Black Diamond Capital Management, subsequently ceasing operations.

Liberty Steel said it also plans to acquire the rolling mill operation in Tennessee and Bayou Steel's depots in Catoosa, Oklahoma; Leetsdale, Pennsylvania; and Chicago.

The deal is expected to be completed by the end of January. Liberty Steel has developed a plan to upgrade and modernize the mill, restart recycling operations in the second-half of next year and steel-making by early the following year, it said in a statement.Asian Metal Copyright Liberty Steel has developed a plan to upgrade and modernize the mill, restart recycling operations in the second-half of next year and steel-making by early the following year, it said in a statement.Asian Metal Copyright The company has pledged to invest $90 million to upgrade the business, the court filing said.

.Asian Metal Copyright The company has pledged to invest $90 million to upgrade the business, the court filing said.Asian Metal Copyright