Business
Application materials served for Stelco reorganization
Application materials served for Stelco reorganization.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Feb. 3 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nmaterials were served late this afternoon in the matter of an application to\nbe heard on February 10, 2006. The application seeks Court approval of a\nproposed post-CCAA corporate structure in which distinct portions of the\nCompany's business would be transferred into separate limited partnerships.\nThe proposed limited partnerships cover the following businesses:\nHamilton steel, Lake Erie steel, Hamilton coke, Lake Erie coke, Hamilton\nenergy, Lake Erie energy, mining, Hamilton land and Lake Erie land.\nThe proposed reorganization was announced on January 20, 2006. It is a\ncondition of Stelco's financing from Tricap Management Limited (\"Tricap\") that\nTricap must be satisfied with the Company's financial and corporate structure.\nTricap and the other equity sponsors under Stelco's Court-approved\nrestructuring plan are of the view that the proposed reorganization will,\namong other things, minimize the cost of capital by enabling the financing of\nthe individual business units in the most effective way possible.\nThe materials served this afternoon note that numerous discussions have\nbeen conducted in recent weeks among Tricap, Stelco, the Court-appointed\nMonitor, the USW, active and retired salaried employees, bondholder\nrepresentatives and the Province of Ontario, among others. The material adds\nthat the revised proposed reorganization endeavours to balance a range of\nissues while facilitating the goal of enabling Stelco to emerge successfully\nfrom the CCAA process.\nAs noted in the application materials, among the features of the proposed\nreorganization are provisions concerning the pension plan funding arrangement\ncontained in Stelco's restructuring plan. In addition to confirming the \nten-year funding arrangement agreed to by the Company and the Province, the\nreorganization proposal outlines the ongoing pension funding obligations of\nStelco and of any acquiror of the Company. Stelco will also be prohibited from\nmaking dividend payments or other forms of distribution on its common shares\nwhile the pension funding arrangements are in effect.\n\nThis news release may contain forward-looking information with respect to\nthe Corporation's business operations, financial performance and conditions.\nActual results may differ from...