Business
Stelco provides restructuring update
Stelco provides restructuring update.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 9 /CNW/ - Stelco Inc. (TSX:STE) today issued an update\non various measures being pursued under its Court-supervised restructuring\nprocess. The update is designed to, among other things, provide information\nthat will assist affected creditors in electing whether to receive all or any\npart of their distribution from the cash pool in new common shares of Stelco,\nrather than cash, as part of the recovery provided under the restructuring\nplan approved by affected creditors on December 9, 2005.\nThe Company indicated that election forms were delivered to all affected\ncreditors in recent weeks. Under the restructuring plan, each affected\ncreditor may elect, no later than 5:00 p.m. (Eastern time) on January 16,\n2006, to receive all or any part of its distribution from the cash pool in new\ncommon shares, subject to an overall limit on the number of new common shares\nthat creditors collectively can elect to receive. Any affected creditor who\ndoes not so elect will receive its entire distribution from the cash pool in\ncash.\nStelco also confirmed that the Court will consider the restructuring plan\napproved on December 9, 2005 at a sanction hearing on January 17, 2006. At\nthat time the Court will also hear an application by certain existing\nshareholders seeking the sale of the entire Stelco enterprise as a going\nconcern. Stelco does not believe that such a course would be in the best\ninterests of the Company and its stakeholders.\nThe Company also reported that the process of identifying a new board of\ndirectors is continuing. The Company's agreement with the three significant\nequity holders provides that the new board will consist of: four directors to\nbe named by Tricap Management Limited, one director to be named by each of\nSunrise Partners Limited Partnership and Appaloosa Management LP, and the\nremaining three directors to be satisfactory to the three significant equity\nholders as a group. It is expected that the composition of the new board will\nbe announced shortly before the date of the sanction hearing.\nStelco also announced that the three significant equity holders, who\ntogether will hold a majority of shares in the Company upon completion of the\nrestructuring, have indicated their desire that Courtney Pratt, the current\nchief executive officer of the Company, be named chai...