Business
Stelco announces filing of 48th Monitor's Report
Stelco announces filing of 48th Monitor's Report.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 20 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nthe Forty-Eighth Report of the Monitor in the matter of the Company's \nCourt-supervised restructuring has been filed. The full text of the Report,\nincluding appendices, can be accessed through a link available on Stelco's web\nsite.\nThe Report provides updating information on previously disclosed\ndevelopments of recent days. The Monitor expresses the view that there has\nbeen considerable progress in resolving issues this week. These issues\ninclude:\n\nTerm sheets: The Report notes that the finalization of the $600 million\nasset based loan and the $375 million bridge loan are conditions precedent to\nthe implementation of the restructuring plan and are critical components of\nthe liquidity and financing contemplated for the restructured Stelco. The\nReport states that Stelco advised the Court that it expected to be in a\nposition to deliver term sheets in the matter of these loan facilities to the\nMonitor by 5:00 p.m. today. The Report notes that the letters and term sheets\ndelivered to the Monitor by the Company are appended to the Report, and that\nthe term sheets have been approved by Stelco's board of directors, subject to\nobtaining the approval of the credit committees of the asset based loan\nproviders. The Report notes that the asset based loan providers will recommend\nthat such approval be granted.\n\nConditions precedent: The Report notes that the term sheets contain\ncertain conditions precedent to the implementation of the financings, which\nthe Monitor notes is not unusual for exit financing at this stage of a major\nCCAA restructuring. The Report adds that the parties to the loan facilities\nhave indicated to the Monitor that they are committed to working to fulfill\nthose conditions precedent.\nThe Report notes that the parties to the asset based loan have indicated\nto the Monitor that they have reached sufficient consensus between themselves\nand with the Province. As a result, the parties have indicated that they do\nnot believe that any issues remain which could reasonably be expected to\nprevent the transactions contemplated in the term sheet from being\nimplemented.\nThe Report notes that the parties to the bridge loan have indicated to\nthe Monitor that details concerning the condition with respect to the proposed\n...