Business
Stelco announces agreement on a restructuring plan
Stelco announces agreement on a restructuring plan.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Nov. 23 /CNW/ - Stelco Inc. (TSX:STE) announced this\nevening that a consensual agreement on the economic terms of a restructuring\nplan has been achieved among key stakeholders.\nThe stakeholder agreement has the support of four key stakeholder groups -\nrepresentatives of the Company's bondholders, the Province of Ontario, Tricap\nManagement Limited and the United Steelworkers. The Company's management and\nthe Chief Restructuring Officer participated in these negotiations. Given the\nspeed at which events moved during the course of today, the Company's Board of\nDirectors has not yet had the opportunity to consider the proposal in detail;\nit is expected to do so by Monday. Should the Board approve the proposed\neconomic terms, it would expect to file an amended plan promptly.\nAt the meetings of creditors held this evening, and at the request of the\nCompany, the Court-appointed Monitor adjourned the meetings until Friday,\nDecember 2, 2005 so that affected creditors may receive and consider the\namended plan. In addition, the Honourable Mr. Justice Farley has been given\nsufficient assurances concerning the agreement by counsel for the key\nstakeholders that he has determined that he need not return from vacation to\nhear motions for alternative relief tentatively scheduled for Friday,\nNovember 25, 2005.\nCourtney Pratt, Stelco President and Chief Executive Officer, said,\n\"Achieving consensus among these stakeholder groups is a positive step toward\nallowing Stelco to emerge as a viable and competitive steel producer for the\nlong term. This proposal will now be presented to, and fully considered by,\nStelco's Board of Directors, based on, among other things, the interests of\nthe Corporation and fairness to the Corporation's stakeholders. I want to\nthank everyone concerned for the effort and dedication that have brought us to\nthis stage.\"\n\"I want to acknowledge the increased participation of the Province of\nOntario and the support we received from the Government of Canada today,\" Mr.\nPratt noted. \"This presence is extremely important and sends a strong signal\nof support to the entire Stelco community.\"\nThe stakeholder agreement is based on:\n - The availability of a $600 million asset-based revolving loan\n facility.\n - The availability of a $375 million revolving bridge facility bei...