Business
Stelco approves a second amended restructuring plan
Stelco approves a second amended restructuring plan.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Dec. 8 /CNW/ - Stelco Inc. (TSX:STE) announced late this\nafternoon that its Board of Directors has approved a second amended\nrestructuring plan (\"the second amended plan\") for consideration by its\ncreditors. The second amended plan will be posted to a link available on the\nCompany's Web site. It will also be filed with the Court before the previously\nadjourned meetings of affected creditors resume on Friday, December 9, 2005.\nCourtney Pratt, Stelco President and Chief Executive Officer, said, \"The\nBoard has approved this second amended plan in response to concerns raised by\nbondholder representatives about the amended plan we announced on December 5,\n2005. Specifically, the second amended plan provides an opportunity for equity\nparticipation by the unsecured creditors and makes that opportunity optional.\nWe believe that this adjustment, together with the other elements of the\nsecond amended plan - which are identical to those in the plan of December 5,\n2005 - address the interests of our stakeholders in a fair and responsible\nway.\n\"While the Board has approved the second amended plan, under a previous\nCourt order the document can be amended up to and during the meetings of\naffected creditors that will take place tomorrow morning. The Company strongly\nencourages all affected creditors to attend the meetings so they know the\nexact details of the plan on which they'll be asked to vote.\"\nThe substantive change from the amended plan announced on December 5,\n2005 concerns the recovery to unsecured creditors. They will continue to\nreceive a pro rata share of Secured Floating Rate Notes. The cash pool, which\nhad been $137.5 million, will now range from a minimum of $106,562,500 to a\nmaximum of $137.5 million. And in addition to their share of 1.1 million new\ncommon shares, affected creditors may elect to receive up to an additional\n5.625 million new common shares. Tricap Management Limited (\"Tricap\"), Sunrise\nPartners Limited Partnership (\"Sunrise\") and Appaloosa Management LP\n(\"Appaloosa\") will commit to purchase a total of 19.375 million new common\nshares, funding $106,562,500 of the cash pool. If affected creditors elect to\ntake cash in lieu of exercising the option to acquire their portion of the\n5.625 million additional new common shares, Sunrise and Appaloosa will a...