Wednesday July 30, 2014

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  • Do you agree with the recent approval of the Northern Gateway pipeline project by the federal government?
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Home »  News »  Business

Timminco signs agreement with stalking horse bidder QSI Partners

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The corporate logo for Timminco Ltd. (TSX:TIM) is shown. THE CANADIAN PRESS/HO

TORONTO - Timminco Ltd. (TSX:TIM) has signed an agreement with stalking-horse bidder QSI Partners Inc. that it hopes will bring out more interested buyers for its assets.

The agreement covers the sale of substantially all of the assets of its wholly-owned subsidiary, Becancour Silicon Inc., including its silicon metal and solar grade silicon assets in Becancour, Que.

A stalking-horse bid is intended to attract other bidders in an effort to get the highest price for an insolvent company's assets.

"The execution of the stalking-horse bid is a very positive step in our restructuring process that we are very pleased to have completed," said Timminco president and CEO Douglas Fastuca.

"We believe that there are many other parties with a strong interest in the business and assets."

The company still requires court approval to make QSI the official stalking-horse bid. A deadline for other potential buyers to submit their expressions of interest is set for March 26.

Both sides have been in discussions since earlier in January when QSI committed to US$4.25 million in funding for Timminco's operations while they restructure under court protection from creditors.

Documents filed by the court-appointed monitor when Timminco filed for protection under the Companies' Creditors Arrangement Act indicated the company expected to be down to about $500,000 of cash by the end of January, a seasonally slow month for sales.

The Toronto-based company owed a total of $89 million to its creditors when it sought protection, including $26 million to the Quebec government's provincial investment agency. Timminco also owes $21.9 million in employee benefits.

Shares of Timminco delisted from the Toronto Stock Exchange in February, about a month after the TSX suspended trading of the insolvent metal producer's stock.


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