Search
AMM.com Copying and distributing are prohibited without permission of the publisher
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.


PSL North America sold to India's Jindal SAW

Keywords: Tags  PSL North America, PSL USA, Jindal SAW, Jindal Tubular USA, bankruptcy, bankruptcy auction, Chapter 11, AM/NS Calbert steel


CHICAGO — Bankrupt large-diameter spiral-weld pipe maker PSL North America LLC has been sold to India’s Jindal SAW Ltd. for $100 million.

The $100-million offer by Jindal SAW subsidiary and stalking horse bidder Jindal Tubular USA LLC remained the "highest and best" after an auction held Aug. 15, according to a sales order filed in U.S. Bankruptcy Court in Delaware and signed by bankruptcy court judge Peter J. Walsh.

The sale comes with one multi-million-dollar caveat: AM/NS Calvert LLC has been granted a $5.4-million claim against Bay St. Louis, Miss.-based PSL North America. The claim includes an immediate cash payment of $327,600 as well as the immediate return of all pipe made from coil supplied by the Calvert., Ala., flat-rolled steel mill as well as the return of any coils manufactured by Calvert and not yet converted into pipe, court documents indicate.

PSL USA Inc.’s largest creditor was AM/NS Calvert, a joint venture between Luxembourg-based ArcelorMittal SA and Japan’s Nippon Steel & Sumitomo Metal Corp. AM/NS Calvert was owed $5.32 million in trade debt (amm.com, June 19).

PSL-North America and PSL USA earlier this year filed for Chapter 11 bankruptcy protection, with PSL-North America’s assets expected to be sold at auction. While PSL-North America was struggling financially, parent PSL USA was not able to help the subsidiary due to its own insolvency proceedings in India, according to court documents.

PSL USA owns a majority stake in PSL-North America. Both are subsidiaries of Mumbai, India-based PSL Ltd.

PSL-North America spent about $103 million to build a pipe mill that had an annual capacity of 300,000 tons and was aimed primarily at serving the oil and gas transportation market (amm.com, Nov. 9, 2007).


Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.



Latest Pricing Trends