Sysco Liquidation Process Begins

The process for liquidating Sysco's assets will include a public call for cash offers and liquidation plans, Economic Development Minister Gordon Balser announced today.

"This is a process for liquidation," said the minister. "We want cash offers for the assets that do not involve government assistance or involvement. We are not looking at business plans or evaluating going-concern proposals."

Ernst & Young is contacting all previous bidders to see if they have an interest in purchasing Sysco's assets. In addition, a public call will be made to ensure the best return possible.

"The bottom line is to maximize the value that comes back to the taxpayers of Nova Scotia," said Mr. Balser. "Our goal is to get the best possible return for the province from the sale of assets."

Last February, Ernst & Young issued a call both for going-concern business plans and for proposals for the sale of assets. At that time, 14 proposals were received for the plant's assets from various international interests, including auctioneers and companies with experience selling steel equipment.

Parties interested in reselling the assets will be asked to submit plans for asset liquidation highlighting the offering price or commission, responsibility for costs of sale, method of sale, anticipated timing, and any plans for remediation of the buildings or other infrastructure.

Major assets of Sysco include the electric-arc furnace, bloom caster, universal rolling mill, head-hardening plant and other equipment and infrastructure.

Public ads will be placed in the coming days, and proponents will have approximately six weeks to reply.