Approximately $10 million of Safety-Kleen's bank debt was said to have changed hands in the 51 range this week after the company got one step closer to selling its Chemical Services Division (CSD) to Clean Harbors. The name has been climbing up from the 32-33 range since the U.S. Bankruptcy Court approved an auction for the sale of CSD in mid-March. At that time, dealers said that all the major trading desks were looking to make trades (LMW, 3/18). Dealers said Safety-Kleen's environmental liabilities and a lawsuit from Laidlaw, which owns 44% of the company, still plague the name.
Last week Clean Harbors announced that it had secured financing to support its acquisition of CSD. Clean Harbors will pay $46.3 million in cash and will assume $265 million in environmental liabilities. The sale is subject to court approval. Calls to officials at Clean Harbors were not returned by press time.
John Kyte, Safety-Kleen spokesman, said the company closed its bidding and auction process for CSD on May 30 and, after evaluating the bids, will take the issue to court on June 13. Onyx North America has filed an objection with the U.S. Bankruptcy Court, asking for a 60-day extension of the bidding and auction process. An emergency hearing will be held on June 10 to discuss the matter, noted Kyte. He said that Safety-Kleen is still in negotiations with Laidlaw.