Steel Mills

Stelco Sees Light at End of Tunnel

March 11, 2017

Stelco, the former US Steel Canada, took another procedural step on March 10 to facilitate the sale of the company to Bedrock Industries.

Stelco filed its final Plan of Compromise, Arrangement and Reorganization with the Ontario Superior Court that addresses restructuring Stelco’s liabilities and the transaction with Bedrock. The plan “would result in the Company becoming a strong, and competitive participant in the North American steel industry,” said a press release from Stelco.

The filing also asks for the stay period under CCAA protection and the Acquisition and Plan Sponsor Agreement (PSA) with Bedrock to be extended to May 31, 2017.

“Sustained, constructive efforts from a number of parties have gotten this process to the point where we can see light at the end of the tunnel,” said Bill Aziz, Chief Restructuring Officer, Stelco. “Stelco has an opportunity to re-emerge as a strong, independent Canadian steel producer. This is the best – and only – outcome that addresses the interests of stakeholders.”

Stelco directors say the plan will “generate the highest reasonable value” for creditors as well as preserving existing pensions for retirees and a “sizeable portion” of their other benefits.

Motions will be heard on May 15 for previously excluded claims to the Claims Process Order. A supplementary claims process has been developed for the filing and determination for all non-USW pension and benefits claims and other related restructuring claims.