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SALT LAKE CITY (AP) -- Sandy-based real estate developer Anderson Development LLC has submitted the high bid of $46.8 million for Geneva Steel's 1,700 acres.
If the U.S. Bankruptcy Court accepts the deal, the property could be developed for residential, commercial and light industrial uses.
The deal is scheduled to close Jan. 6.
At a closed auction Thursday, Anderson beat out rival Utah Lake Development LLC, a joint venture partner with Prudential Real Estate Investors.
The land is the Vineyard steel company's last major asset.
"This is a big step forward for the next stage of that site," said James Markus, Geneva Steel's Chapter 11 trustee. "I think the Anderson people are really going to help move the site forward. It will be a changed site in five years."
J. Thomas Beckett, the lead attorney for Geneva's unsecured creditors, who he says are owed around $75 million, was happy with the $46.8 million bid.
Beckett and Markus said that sum should allow the unsecured creditors to recover at least 50 cents on the dollar.
"I believe the perception of unsecured creditors at the beginning of this year was they were looking at 20 or 25 cents on the dollar," Markus said.
"We're pretty happy with the success of today's auction. It's the highest offer we've received since the beginning of the case," Beckett said. "There's already enough money in the bank, about $28 million to $29 million, to cover the remaining debt of the secured creditors."
Under the sales agreement, Anderson Development will assume all responsibility for any remaining demolition and environmental remediation work.
Geneva has been in bankruptcy since January 2002. Its core steelmaking equipment was sold to a Chinese firm for $40 million, and its water rights went for $88.5 million to the Central Utah Water Conservancy District.
Markus said its emission credits are still to be sold.
(Copyright 2005 by The Associated Press. All Rights Reserved.)
