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Stelco to seek court order concerning issuance of amended Floating Rate Notes
Stelco to seek court order concerning issuance of amended Floating Rate Notes.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, March 24 /CNW/ - Stelco Inc. announced today that it has\nproposed to amend its Court-approved restructuring plan to change, among other\nthings, certain terms of the New Secured Floating Rate Notes (\"FRNs\") to be\nissued under the plan. The amendments include an increase of 0.50% to the\ninterest rate payable under the FRNs in the first two years of the term and\nthereafter under certain circumstances. The call protection for the FRNs has\nalso been changed.\nThe proposed amendments to the FRNs are the result of discussions held\namong key stakeholders to finalize the terms of various agreements\ncontemplated by Stelco's restructuring plan. The proposed amendments require\nthe consent of the Court-appointed Monitor, Tricap Management Limited and the\nother equity sponsors, and must not be objected to by the Senior Bondholder\nSteering Committee (\"the SBSC\"). Stelco has obtained the consent of the\nMonitor and Tricap. The Company is awaiting confirmation from the other equity\nsponsors and the SBSC that Stelco may proceed with the proposed amendments.\nThe Province of Ontario supports the amendments.\nStelco also announced that it will seek an Order of the Superior Court of\nJustice (Ontario) in connection with U.S. securities law requirements and the\nissuance of the amended FRNs. The motion is scheduled to be heard on Tuesday,\nMarch 28, 2006. If for any reason the remaining confirmations from the other\nequity sponsors and the SBSC are not obtained, the motion will not proceed.\nOn March 9, 2006, Stelco sought and obtained an Order in connection with\nU.S. securities law requirements and the issuance and exchange of the FRNs and\nguarantees of Stelco's obligations under the FRNs. The Company has been\nadvised by U.S. securities law counsel that an Order similar to that obtained\non March 9, 2006 is required in respect of the amended FRNs.\nThe Order being sought, if granted, will enable Stelco to utilize a U.S.\nsecurities law exemption by approving the terms and conditions of the issuance\nand exchange of the amended FRNs and other securities for the claims of\naffected creditors, and by declaring that those terms and conditions are fair\nto the affected creditors, in a manner similar to the approval in the March 9,\n2006 Order.\nNotice of this motion is being provided so that affected creditors a...