HAMILTON, ON , Dec. 2 /CNW/ - Stelco Inc. (TSX:STE) today announced that the Fortieth Report of the Monitor in the matter of the Company's Court-supervised restructuring has been filed. The full text of the Report can be accessed through a link available on Stelco's web site. Meetings of affected creditors: Among other things, the Report reviews the previously announced developments surrounding the meetings of affected creditors in recent weeks, including today's adjournment of the meetings until Friday, December 9, 2005. Convertible Noteholders proposal: The Report notes that the Convertible Noteholders, who did not participate in the negotiations resulting in the agreement on a restructuring plan announced on November 23, 2005, and who were not party to that agreement, submitted a proposal to Stelco on a confidential basis on November 30, 2005. The Convertible Noteholders issued a news release with respect to the proposal on December 1, 2005. The Monitor indicates that Stelco and its advisors met with representatives of the Convertible Noteholders on December 1, 2005. The Report adds that Stelco has advised the Monitor that its stakeholders are considering the proposal. Request to extend the stay period: The Monitor also reports on Stelco's application for an extension of the stay period until Monday, December 12, 2005 to allow the creditors' meetings to occur on December 9, 2005. In recommending that the extension be granted, the Monitor states its view that the Company has acted in good faith and with due diligence, and notes the potential economic loss and certainty if the restructuring of Stelco is not given every opportunity to succeed. An amended restructuring plan: The Monitor notes that Stelco has indicated its intention to finalize an amended plan and seek Board approval of that plan through the weekend if necessary. Considerable input has been provided by representatives of the senior bondholders, the Province of Ontario and Tricap Management Limited. According to the Report, Stelco has indicated that it will post the amended plan and other information on its website and serve those materials on the service list as soon as they are available. The Monitor states that, at the time of its Report, it does not know whether the amended plan would have a reasonable prospect of success at the meetings to be held on December 9, 2005. The Monitor adds that it hopes to file a Supplementary Report in this regard before the Court hearing on Monday, December 5, 2005. Failing that, the Monitor indicates that it expects counsel for various stakeholders to indicate their level of support, or lack thereof, for the amended plan at the hearing itself. A letter from the secured lenders: The Report notes that counsel for the existing Stelco lenders and DIP lenders have advised counsel for the Monitor in writing of the lenders' concern as to whether the Court will further extend the stay period. The lenders' letter indicates that, if the extension is not granted, the lenders intend to move for the appointment of an interim receiver to protect their collateral. Cash flow results and forecasts: The Report contains appendices providing a summary and variance analysis of receipts and disbursements for the Company and its CCAA-covered subsidiaries between September 10, 2005 and November 18, 2005. The Report also reviews the cash flow forecasts for the same entities between November 19, 2005 and February 28, 2006. The Report notes that Stelco is forecasting that total facility utilization of the Existing Stelco Financing Agreement will increase by $74.8 million to $292 million between November 19, 2005 and February 28, 2006. About Stelco Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses. This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions. Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2004 Annual Report. To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca. %SEDAR: 00001549E