Business
Stelco obtains Court Order concerning issuance of new securities
Stelco obtains Court Order concerning issuance of new securities.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, March 28 /CNW/ - Stelco Inc. announced today that it has\nsought and obtained an Order concerning the issuance of new securities and\nother consideration to affected creditors in connection with the Company's\nrestructuring plan.\nAt a hearing held this morning, the Superior Court of Justice (Ontario)\napproved the terms and conditions of the issuance and exchange of these\nsecurities and cash in exchange for the affected claims. The Court also\ndeclared that those terms and conditions are fair to the affected creditors.\nThe consideration in question includes New Secured Floating Rate Notes\n(\"FRNs\"), New Common Shares, New Warrants and cash.\nAs Stelco has disclosed on previous occasions, the Order will enable the\nCompany to utilize an exemption under U.S. securities law concerning the\nissuance and exchange of the FRNs. A similar Order had been granted on\nMarch 9, 2006. In the meantime, and as a result of discussions among relevant\nstakeholders, Stelco has made certain amendments to its restructuring plan,\nincluding changes to the FRNs. The Company was advised by U.S. securities law\ncounsel that, in light of these amendments, an Order similar to that obtained\non March 9, 2006 was required.\n\nAbout Stelco\nStelco is one of Canada's longest-established steel companies. It is\ncurrently in the final stages of a Court-supervised restructuring. This\nprocess is designed to establish the Company as a viable and competitive\nproducer for the long term. The new Stelco will be focused on its two Ontario-\nbased integrated steel businesses located in Hamilton and in Nanticoke. These\noperations produce high quality value-added hot rolled, cold rolled, coated\nsheet and bar products. This news release may contain forward-looking\ninformation with respect to the Corporation's business operations, financial\nperformance and conditions. Actual results may differ from expected results\nfor a variety of reasons including factors discussed in the Corporation's\nManagement's Discussion and Analysis section of the Corporation's 2005 Annual\nReport. To learn more about Stelco and its businesses, please refer to our Web\nsite at www.stelco.ca.\n\n%SEDAR: 00001549E\n\n\n","length":2255,"tagName":"div"}]