Business
Stelco announces filing of 29th Monitor's report
Stelco announces filing of 29th Monitor's report.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, May 12 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nthe Twenty-Ninth Report of the Monitor in the matter of the Company's \nCourt-supervised restructuring was filed today. The full text of the Report\ncan be accessed through a link available on Stelco's Web site.\nThe Report provides additional information on the Company's first quarter\nresults and information with respect to the Company's strategic capital\nexpenditures. In particular, the Report notes that the capital expenditure\nprogram, a portion of which is currently underway, will take a further\n18 to 24 months to implement and Stelco's estimated cost is between $360 and\n$467 million. In addition, Stelco is continuing its Phase II upgrade at the\nLake Erie Hot Strip Mill and has commenced two mini-cogeneration projects, one\nat Lake Erie and one at Hamilton.\nThe Monitor also provides an update on the Company's restructuring plan\noutline. The Report notes that Stelco has prepared a plan outline following\ndiscussions with various stakeholders and their advisors. The Monitor also\nreports that the Company will present the plan outline and supporting\ninformation immediately to stakeholders on a confidential basis.\nThe Report notes that the views of stakeholders vary widely with respect\nto the restructuring alternatives for the Company.\nThe Report indicates the Company's view is that a Court-supervised\nmediation process would be an efficient and effective method of assisting\nStelco and its stakeholders in attempting to build a consensus around which a\nrestructuring plan could be formulated. The Report states that the Monitor\nagrees with this view, and notes that several stakeholders have indicated\ntheir support for the concept of a mediation to the Monitor.\nThe Monitor notes that Stelco, with the Monitor's assistance, intends to\ndevelop the terms of a mediation process in consultation with its\nstakeholders. The Report adds that Stelco and various stakeholders have\nexpressed their views to the Monitor on how such a mediation process could be\nstructured. In an Appendix to the Report, the Monitor provides its own views\nas to the key elements of such a process. Those views contemplate the\nappointment of an acceptable mediator, following which the mediator, with the\nassistance of the Monitor and others as required, would determi...