Business
Stelco to file amended restructuring plan
Stelco to file amended restructuring plan.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Dec. 5 /CNW/ - Stelco Inc. (TSX:STE) announced early this\nmorning that its Board of Directors has approved an amended restructuring plan\nfor consideration by its creditors. The amended plan has been posted to a link\navailable on the Company's Web site. It will also be filed with the Court\nbefore this morning's hearing that will consider Stelco's application to\nextend the stay period under its restructuring until December 12, 2005.\nIf the stay period is extended, affected creditors will be asked to\nconsider and vote on the amended plan at the meetings to be resumed on Friday,\nDecember 9, 2005 or as otherwise ordered by the Court.\nCourtney Pratt, Stelco President and Chief Executive Officer, said, \"The\nBoard has approved an amended plan taking into account, among other things,\nthe interests of the Company and fairness to our stakeholders. We believe the\namended plan addresses those concerns in a fair, reasonable and responsible\nmanner. While the amended plan contains certain new and positive features,\nincluding significant cash for our creditors, we are not in a position to say\nthat it is supported by all stakeholders at this time.\n\"The amended plan is the result of discussions that have taken place\namong a number of stakeholder groups in recent days and weeks. Our goal\nremains, as it has from the outset, to achieve a plan that will enable Stelco\nto emerge a viable and competitive steel producer for the long term. It's time\nto bring this matter to a vote.\"\nThe amended plan reflects the terms of the stakeholder agreement\nannounced by Stelco on November 23, 2005 with one major exception. The\nproposed amended plan does not include what had been 9% Unsecured Convertible\nNotes converting into 25 million common shares of the Company. Those Notes are\nreplaced by a proposed cash component under which affected creditors will\nreceive a pro rata share of $137.5 million. The funding for this is to come\nfrom a proposed subscription for common shares from Tricap Management Limited\nand other equity investors discussed later in this news release. This\nsubscription will be made under a plan sponsor agreement to be entered into by\nStelco, Tricap Management Limited and the other subscribers noted below, all\nof which are acting independently. This cash component would amount to\napproximately ...