Business
Stelco's restructuring plan receives Court approval
Stelco's restructuring plan receives Court approval.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 21 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nits restructuring plan was sanctioned and approved by the Superior Court of\nJustice (Ontario) last evening.\nThe Court indicated its view that Stelco has been in compliance with all\nstatutory requirements, has adhered to previous orders of the Court, and that\nnothing has been done or purported to be done that is not authorized by the\nCompanies' Creditors Arrangement Act. The Court also found that the\nrestructuring plan was fair, reasonable and equitable.\nCourtney Pratt, Stelco President and Chief Executive Officer, said, \"This\nis wonderful news for Stelco, for our employees and retirees, for our other\nstakeholders, and for the communities in which we operate. The conclusion of\nour restructuring is now in sight. The new Stelco that emerges from this\nprocess will be much better positioned to become a viable and competitive\nsteel producer for the long term. Stelco will do everything possible to reward\nthe confidence that has been shown in the restructuring plan and in the future\nof this great company.\"\nThe Court had indicated earlier this week that it wanted to be certain\nthat the restructuring plan presented for approval could actually be\nimplemented. To that end, the Company had advised the Court that it expected\nto be in a position to deliver term sheets in the matter of the $600 million\nasset based loan and the $375 million bridge loan to the Monitor by 5:00 p.m.\non January 20, 2006. Letters and term sheets in a form acceptable to the Court\nwere delivered, as referenced in the 48th Report of the Monitor issued late\nyesterday afternoon. Having reviewed these materials and the Monitor's Report,\nthe Court indicated that it was satisfied the restructuring plan was\nimplementable.\nThe Court also determined that the restructuring plan was fair to\nexisting shareholders on the grounds that there was insufficient value with\nwhich to provide them any recovery. In addition, the Court noted its belief\nthat the marketplace had been exhaustively and well canvassed for prospective\npurchasers of the Company during the restructuring process. The Court also\nnoted that no real or realistic interest had been shown even though certain\nexisting shareholders had made efforts in this regard in recent months.\nThe Sanction Order also exten...