Business
Stelco announces filing of 44th Monitor's Report
Stelco announces filing of 44th Monitor's Report.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Dec. 22 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nthe Forty-Fourth Report of the Monitor in the matter of the Company's \nCourt-supervised restructuring has been filed. The full text of the Report,\nincluding a number of appendices and schedules, can be accessed through a link\navailable on Stelco's web site. Certain portions of the Report have been\nredacted due to the confidential nature of the information. An appropriate\ncourt order will be sought to seal the full version of the Report in due\ncourse. The Report deals primarily with the following matters:\n\nRecommendation on the sanction hearing: The Monitor states its view that\nthe restructuring plan approved by affected creditors on December 9, 2005 is\nfair and reasonable. The Monitor recommends that the Court sanction the plan\nat the hearing scheduled for January 17, 2006. In support of this\nrecommendation the Monitor indicates its belief that Stelco has satisfied the\nrequirements imposed on it regarding the meetings of affected creditors held\nin November and December, including the requirements under the CCAA and all\nCourt Orders made during the restructuring process. The Monitor also states\nthe view that the plan approved on December 9, 2005 represents a fair and\nreasonable compromise among stakeholder groups and is fair and reasonable in\nterms of its effect on the affected creditors.\n\nFairness of the plan and implications had an agreement not been reached:\nThe Monitor reviews the elements of the plan approved by affected creditors on\nDecember 9, 2005 describing the plan as the embodiment of a point of consensus\namong key stakeholder groups. The Monitor states that, given the intensity of\nthe negotiations towards an agreement, it does not appear that an agreement\nwould have been reached had it been necessary to provide material\nconsideration to flow to the existing shareholders. The Monitor notes that the\nexisting shareholders rank behind the creditors of Stelco in terms of legal\npriority.\nThe Report observes that without an agreement such as is embodied in the\nplan approved on December 9, 2005, it is unlikely that Stelco would be able to\nemerge as a viable entity. The Report notes that, under a realization in the\nabsence of an approved plan, the unsecured creditors would receive\napproximately 13 to 28 cents on...