Galvex owner returns to the game

  • 2006-02-15
  • From wire reports
TALLINN - Barry D. Bernsten, one of the original owners of the Galvex galvanizing plant who subsequently sold his interest to then-partner Daniel Bain, is reportedly back in the company after reacquiring his 50 percent stake from Bain.

Bernsten said he was trying to decide whether to sell the galvanizing plant or continue operating it, which he believes would be more advantageous. Still, he has contacted a number of parties who he thinks might be interested in buying the plant and would sell to the highest bidder.

Colie Spink, CFO of Galvex Holdings, told the American Metal Market, a U.S. trade paper, that he knew of Bernsten's activities but was not aware of any shares in the company changing hands.

Spink was appointed by a consortium of Galvex lenders after Galvex defaulted on a debt.

Until now, 90 percent of Galvex shares belonged to Bain.

Kalev Klaar, administrative manager of Galvex Estonia, told the Baltic News Service that he also had heard reports of Bernsten's activity, but he could neither corroborate nor deny them officially.

According to Klaar, work to bring Galvex a new owner was still in progress. Unofficial information suggests that Russia's Severstaltrans wants to buy the company and has offered some $160 million for it.

Galvex filed for bankruptcy protection in late January. The effort was spurred by a finance institution that had acquired Galvex debts.