HAMILTON, ON, April 19, 2017 /CNW/ - Stelco, the name under which U. S. Steel Canada Inc. carries on business ("Stelco" or the "Company"), announces that it and Bedrock Industries Group LLC (Bedrock) have reached an agreement in principle (the "Agreement") with the Stelco salaried employees and retirees and certain others represented by court-appointed representatives and counsel (the"Stelco Salaried and Other Non-USW Group") regarding their support for Stelco's plan of arrangement, compromise and reorganization (the "Plan"), including the treatment of their Other Post-Employment Benefits ("OPEB"), unfunded supplemental pensions claims, termination and severance claims, and future pension service. Pursuant to the Agreement, which is subject to approval by the Ontario Superior Court of Justice (the "Court"), the Stelco Salaried and Other Non-USW Group has agreed to vote in favour of the Plan.
Stelco & Bedrock Industries Reach an Agreement in Principle
"I thank everyone who played a constructive role in reaching this agreement," said Bill Aziz, Chief Restructuring Officer, Stelco. "Momentum continues to build towards this great company having an opportunity to re-emerge as a strong, independent Canadian steel producer. We are getting closer to the best – and only – outcome that balances the realities of the situation with the interests of the many stakeholders."
The purpose of the Plan is to restructure Stelco's liabilities and to facilitate a restructuring transaction between the Company, Bedrock and other key stakeholders that would result in the Company becoming a strong, and competitive participant in the North American steel industry. On March 15, 2017, the Court approved a Meeting Order that authorized meetings of affected creditors to be held on April 27, 2017 to vote on the Plan. As a result of the Agreement, Stelco is now well positioned to obtain approval of its Plan by the affected creditors at the meetings. Stelco has been operating under Companies' Creditors Arrangement Act ("CCAA") protection since being granted an initial stay of proceedings in September of 2014.
Ernst & Young Inc., as the Court-appointed Monitor, continues to oversee the business and financial affairs of the company during the CCAA process. Current Court filings, including the Plan of Compromise, Arrangement and Reorganization, Information Circular and information regarding a Supplementary Claims Process and other information relevant to the restructuring process is available on its website at www.ey.com/ca/USSC.
Stelco will continue to provide updates as developments warrant.
Powered by Canadian craftsmanship, Stelco's operations in Hamilton and Nanticoke reflect the strength of each community. Together employing more than 2,200 people, these full integrated, industry-leading facilities are among the most safe, environmentally progressive, and productive steel plants in the world. Hamilton Works is located on the shore of Lake Ontario in Hamilton, Ontario. Lake Erie Works is about an hour's drive south, and is located in Nanticoke, Ontario, on the shores of Lake Erie. Stelco produces high-quality steel that is used primarily in the North American automotive, construction, infrastructure, appliance, manufacturing and pipe and tube industries.
John Packard is the President and Publisher of Steel Market Update. Since 1977, he has been an active participant in the flat rolled steel business in North America. His background provides the unique flavor and quality of Steel Market Update. John has held positions in the service center, steel mill and trading company segments of the flat rolled steel industry. John founded Steel Market Update, Inc. in August 2008. John can be reached via email at: John@SteelMarketUpdate.com or by phone: 800-432-3475.Website: www.SteelMarketUpdate.com