Business
Stelco announces filing of 45th Monitor's Report
Stelco announces filing of 45th Monitor's Report.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 10 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nthe Forty-Fifth 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, can be accessed through a link available on\nStelco's web site. The Report deals primarily with the following matters:\n\nAnalysis of range of recoveries for affected creditors: The Report notes\nthat the total of proven claims plus post-filing interest obligations is\nestimated to be approximately $640 million. The Report also provides, in\nAppendix B to the Report, an illustrative range of recoveries for affected\ncreditors based on the plan approved in December 2005 and various enterprise\nvalue ranges.\n\nStelco's forecasting process: The Monitor notes that it has reviewed\nconcerns expressed about the Company's forecasting processes in an affidavit\nby Fabrice Tayor (\"the Taylor affidavit\") filed by certain equity holders in\nDecember 2005. The Monitor states its view that the forecasting processes\nfollowed by Stelco have been thorough and comprehensive, and that the\nprojections have been prepared in a responsible and detailed manner. In\nsupport of this conclusion the Report notes that the forecasts have been\nprepared by senior management with input from key departments. The Monitor\nadds that Stelco has regularly updated its financial projections as business\nconditions have shifted, and has kept key stakeholder groups informed of\nchanges to its forecasts on a regular basis.\n\nTiming of sale of Stelpipe assets: The Report expresses the view that the\nTaylor affidavit inaccurately claims that Stelco delayed closing of the sale\nof Stelpipe to Lakeside Steel. The Report notes that the Monitor was involved\nin the negotiation of the definitive sale agreement and with the closing of\nthe transaction. The Monitor notes that the transaction closed on October 31,\n2005, which was the date contemplated under the definitive agreement.\n\nAbsence of prospective purchasers: The Monitor confirms that during the\nlast several months it has not been approached by, or received any expression\nof interest from, any party interested in purchasing Stelco. The Report adds\nthat no such overtures have been made since the terms of the Company's\nrestructuring plan were appro...