Business
Stelco announces filing of 46th Monitor's Report
Stelco announces filing of 46th Monitor's Report.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 13 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nthe Forty-Sixth Report of the Monitor in the matter of the Company's Court-\nsupervised restructuring has been filed. The full text of the Report can be\naccessed through a link available on Stelco's web site.\n\nStatus of key financing elements: The Report reviews the status of a\nnumber of financing elements associated with the restructuring plan approved\nby affected creditors in December 2005.\nThe Monitor indicates that it has been advised that the relevant parties\nare working to resolve outstanding issues in the process of finalizing the\n$600 million asset based loan and the $375 million Tricap bridge loan\nfacilities. The Report adds that the parties remain optimistic that acceptable\nsolutions to these issues will be found and implemented.\nThe Monitor expresses the view that the principal issues to be resolved\ninclude the corporate structure of Stelco, which could involve the transfer of\nassets of some of Stelco's operations or divisions to new affiliates, and\nsatisfying the providers of the above-noted facilities as to the priority of\nthe new financing.\nThe Report notes that, if the potential resolution of these issues\ninvolves the reorganization of Stelco's corporate structure, and if the\nrestructuring plan is approved by the Court, the Monitor is of the view that\nthe closing might reasonably be expected to extend beyond the currently\nanticipated plan implementation date of February 28, 2006, and may require a\nfurther Order from the Court.\n\nStatus of board selection: The Monitor provides an update on the process\nof identifying the list of proposed directors for the new board of Stelco.\nThe Report notes that the three significant equity holders - Tricap\nManagement Limited, Sunrise Partners Limited Partnership, and Appaloosa\nManagement L.P. - have identified directors to be named by them who are\nwilling to act in such capacity. The Monitor adds that, based on input from\nthe three significant equity holders, Stelco has developed a list of directors\nwhich the three significant equity holders have indicated that they support.\nThe Report states that discussions are ongoing between the three significant\nequity holders and representatives of the Informal Committee of Senior\nBondholders with respect to the composition of...