Business
Stelco issues restructuring update
Stelco issues restructuring update.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 27 /CNW/ - Stelco Inc. (TSX:STE) today provided an\nupdate in the matter of its Court-supervised restructuring.\nThe Company announced that the Forty-Ninth Report of the Monitor has been\nfiled. The full text of the Report can be accessed through a link available on\nStelco's web site.\nThe Report deals exclusively with the matter of facilitating Stelco's\nsale of its interest in Norambar Inc., Stelwire Ltd. (\"Stelwire\") and Stelfil\nLtDee to Mittal Canada Inc. (\"Mittal\"). The Court approved this transaction on\nDecember 12, 2005. The Report notes that Stelwire is the only one of the three\nnon-core subsidiaries that is an applicant under the CCAA proceedings.\nStelco and Mittal are seeking to close the transaction on January 31,\n2006. The Company's restructuring plan, however, will not be implemented by\nthat date. This has raised concerns on the part of Mittal regarding Stelwire's\nstatus as a CCAA applicant and liability for affected claims.\nThe Monitor notes that it has worked with Stelco and Mittal to find a way\nto address Mittal's concerns in order to allow the transaction to close on\nJanuary 31, 2006. The Report states that Stelco will seek a Court Order to the\neffect that on the closing of the transaction: (a) the Initial Order and\nsubsequent Court Orders in the CCAA proceedings will not be construed in any\nway that restricts Mittal's ability to carry on the business of Stelwire,\n(b) the Monitor's powers and duties in respect of Stelwire will be limited,\n(c) the holders of affected claims will have no further recourse to Stelwire\nunless provided for in the restructuring plan, and (d) if the plan is not\nimplemented, the affected claims that have recourse against Stelwire or the\nproperty of Stelwire shall only have recourse to the sale proceeds from the\nsale transaction.\nThe Monitor recommends that Stelco's application in this regard be\ngranted as a means of facilitating the closing of the transaction.\nStelco also announced the outcome of the share election process\nundertaken by affected creditors in the matter of the Company's approved\nrestructuring plan.\nUnder the Company's restructuring plan, affected creditors could elect to\nreceive all or part of their distribution from the cash pool in new common\nshares. A total of 5.624 million shares were available for that purp...