Trading for Saftey-Kleen picked up last week with $30 million moving and bids climbing from 32-33 to 36 following U.S. Bankruptcy Court approval of the bidding and auction process for the sale of its Chemical Services Division (CSD). Dealers said all the major trading desks are looking to make trades. Earlier in the year the waste-services company had received commitments from Clean Harbors to buy CSD for $46.3 million and assume its environmental liabilities of roughly $265 million dollars.
Safety-Kleen has been under Chapter 11 bankruptcy protection since June 2000 and in its Jan. 15 10-Q the company said there is currently no time frame for emergence. The company was recently granted an extension to its $100 million debtor-in-possession facility led byTD Bank and CIT Group, which also provides for an additional $100 million, according to John Kyte, company spokesman. He said that the agreement was pending paperwork completion and there is no set maturity date at this time. Kyte declined to comment on whether proceeds from a CSD sale would go to the company's debtors.