Steel Mills

USS Canada Seeks Credit Protection Extension

Written by Sandy Williams

US Steel Canada will return to court on Wednesday to seek an extension of its credit protection until May 20, 2015. USSC received bankruptcy protection last September under the Companies Credit Arrangement Act (CCAA), beginning a lengthy restructuring process which includes the sale of US Steel Lake Erie Works and Hamilton Works.

Extensions are generally granted when significant progress is shown towards the restructuring effort. USSC spokesperson Trevor Harris said US Steel is “hopeful” that the extension will be approved.  

Since the last extension, USSC has been working to update its 2015 business plan and long-term forecast said William Aziz, Chief Restructuring Officer for USSC. USSC has begun the process to determine potential liability in respect to USSC’s pension and OPEB Plans.

In December, USSC was granted permission to restart Hamilton’s hot-idled coke ovens which will commence in March.

USSC is also soliciting buyers for surplus land surrounding Hamilton Works. January 22 is the deadline for non-binding bids from interested parties.

Aziz said in the court documents that USSC will have sufficient cash flow and funding to continue operations through the May 20 extension date.

Latest in Steel Mills