Business
Creditors approve Stelco restructuring plan
Creditors approve Stelco restructuring plan.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Dec. 9 /CNW/ - Stelco Inc. (TSX:STE) announced early this\nevening that a third amended restructuring plan was approved by affected\ncreditors at the previously-adjourned meeting that resumed today. Affected\ncreditors of certain Stelco subsidiaries also voted to approve the plan at\nother meetings resumed this afternoon.\nAt the meeting of affected creditors of Stelco Inc., the plan was\napproved by 78.4% of those affected creditors who voted in person or by proxy,\nrepresenting 87.7% of the total value of affected claims that were voted at\nthe meeting.\nCourtney Pratt, Stelco President and Chief Executive Officer, said, \"We\ntruly appreciate the support shown by our creditors today. The approved plan\nis fair, reasonable and responsible. It balances the competing interests of\nour stakeholders. And it paves the way for Stelco to emerge from Court\nprotection and to become a viable and competitive steel producer for the long\nterm.\n\"I want to acknowledge the efforts of our stakeholders and their\nrepresentatives, our own Board of Directors and advisors, as well as the\nmanagement team and employees of Stelco itself. The combined commitment and\nhard work shown by all parties helped to secure this positive outcome. The\nstrengthened Stelco resulting from those efforts will work to reward the\nconfidence that's been shown today.\"\nThe Company will be in Court on Monday morning to report on today's\ndevelopments and to request an extension of the stay period. It will then\nproceed to seek the Court's approval of the plan. The Company anticipates this\ncould occur before the end of the year, subject to the Court's availability.\nIf that approval is granted, the Company anticipates emerging from Court\nprotection early in 2006.\nSeveral substantive changes from the second amended plan announced on\nDecember 8, 2005 concern the recovery to unsecured creditors.\nUnsecured creditors will still receive a pro rata share of Secured\nFloating Rate Notes. The cash pool will now range from a minimum of\n$108,548,000 to a maximum of $137.5 million. In addition to their share of\n1.1 million new common shares, affected creditors may elect to receive up to\nan additional 5.264 million new common shares. Tricap Management Limited\n(\"Tricap\"), Sunrise Partners Limited Partnership (\"Sunrise\") and Appaloosa\nManagem...