Steel Mills

USSC Creditor Protection Deadline Draws Near

January 9, 2015

US Steel Canada has until Tuesday to file the necessary papers to extend the creditor protection order that is set to expire on January 23. The extension is likely to be granted as long as USSC shows progress towards restructuring plans for Lake Erie Works and Hamilton Works—progress that USSC says is continuing.

“The CCAA process will continue as long as the court appointed Monitor and the Court are satisfied that the parties are working in good faith toward a solution,” said USSC spokesperson Trevor Harris in an email to the Hamilton Spectator. “The monitor and the court appointed chief restructuring officer will continue to report to the court regarding progress and work toward a restructuring solution.”

US Steel Canada was granted creditor protection by the Ontario Superior Court on September 26, 2014. Originally the company was to find a buyer for Hamilton and Lake Erie Works by Nov. 15. That deadline has been extended several times with the most recent one expiring January 23.

In November, court appointed monitor Alex Morrison determined that USSC’s cash position will have decreased from $132 million, when it filed for creditor protection, to just $33.2 million by the end of January 2015.