Sterling inks deal for Pulp Chemicals unit. (News).(Sterling Chemicals Inc. to sell division to Superior Propane Income Fund)(Brief Article)

Chemical Market Reporter, November, 2002

STERLING CHEMICALS Inc. has entered into an agreement to sell its pulp chemicals division to Canada's Superior Propane Income Fund for $375 million in cash, subject to "certain adjustments," the company says. Toronto, Ontario-based Sterling Pulp Chemicals operates five plants in Canada and one in the US, at Valdosta, Ga, and focuses on sodium chlorate and sodium chlorite production.

Sterling says that the agreement already has the support of its major creditors, and that an asset management company has agreed to provide a $60 million infusion of new equity under Sterling's reorganization plan. The company filed for Chapter 11 bankruptcy protection in July of last year. However, the sale is subject to US Bankruptcy Court approval as well as other approvals....

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