HAMILTON, ON, Jan. 10 /CNW/ - Stelco Inc. (TSX:STE) today announced that
the Forty-Fifth Report of the Monitor in the matter of the Company's
Court-supervised restructuring has been filed. The full text of the Report,
including a number of appendices, can be accessed through a link available on
Stelco's web site. The Report deals primarily with the following matters:
Analysis of range of recoveries for affected creditors: The Report notes
that the total of proven claims plus post-filing interest obligations is
estimated to be approximately $640 million. The Report also provides, in
Appendix B to the Report, an illustrative range of recoveries for affected
creditors based on the plan approved in December 2005 and various enterprise
value ranges.
Stelco's forecasting process: The Monitor notes that it has reviewed
concerns expressed about the Company's forecasting processes in an affidavit
by Fabrice Tayor ("the Taylor affidavit") filed by certain equity holders in
December 2005. The Monitor states its view that the forecasting processes
followed by Stelco have been thorough and comprehensive, and that the
projections have been prepared in a responsible and detailed manner. In
support of this conclusion the Report notes that the forecasts have been
prepared by senior management with input from key departments. The Monitor
adds that Stelco has regularly updated its financial projections as business
conditions have shifted, and has kept key stakeholder groups informed of
changes to its forecasts on a regular basis.
Timing of sale of Stelpipe assets: The Report expresses the view that the
Taylor affidavit inaccurately claims that Stelco delayed closing of the sale
of Stelpipe to Lakeside Steel. The Report notes that the Monitor was involved
in the negotiation of the definitive sale agreement and with the closing of
the transaction. The Monitor notes that the transaction closed on October 31,
2005, which was the date contemplated under the definitive agreement.
Absence of prospective purchasers: The Monitor confirms that during the
last several months it has not been approached by, or received any expression
of interest from, any party interested in purchasing Stelco. The Report adds
that no such overtures have been made since the terms of the Company's
restructuring plan were approved by affected creditors in December.
Meeting equity holder information requests: The Report reviews the manner
in which Stelco, with the Monitor's assistance, has received and reviewed
information requests from certain equity holders. The Report notes that Stelco
and the Monitor have met with the equity holders' financial advisors and
solicitors, have provided them with the same detailed presentation made to
other stakeholders, and responded to questions.
The claims process: The Report provides an update in such matters as the
number and value of claims received, the manner of dealing with such claims
under the Court's claims process, and the assignment of claims under that
process. Appendix A to the Report provides information on the status of claims
under such headings as total claims filed, proven claims, disputed claims and
unresolved claims.
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.
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