HAMILTON, ON, Jan. 16 /CNW/ - Stelco Inc. (TSX:STE) today announced that
the Forty-Seventh 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.
The Report deals primarily with the naming of the directors to the
Company's new board of directors, which will take office on implementation of
the corporation's Plan of Reorganization and Arrangement. The sanction hearing
before the Ontario Superior Court of Justice, which precedes Plan
implementation, is slated for tomorrow, January 17, 2006, and Plan
implementation is conditional upon a successful sanction hearing. Plan
implementation is expected to occur in the first quarter of 2006. The current
board of directors remains responsible for the affairs of the corporation
until Plan implementation.
The current Board and the three equity sponsors who will hold a majority
of shares upon completion of the restructuring have indicated their support of
the list. In addition, the proposed directors have indicated their willingness
to serve on the new board.
Stelco's previously announced agreement with the three equity sponsors
provides that the new board will consist of: four directors to be named by
Tricap Management Limited ("Tricap"), one director to be named by each of
Sunrise Partners Limited Partnership ("Sunrise") and Appaloosa Management LP
("Appaloosa"), and the remaining three directors to be satisfactory to the
three significant equity sponsors as a group.
The proposed directors named by Tricap are:
Peter Gordon - Mr. Gordon is Managing Partner of Tricap Management
Limited. He has been involved in investment and merchant banking activities
since joining Brookfield in 1998. His career also includes 15 years of
operating experience in the mining industry, as well as in finance and
marketing.
John Lacey - Mr. Lacey is Chairman of The Alderwoods Group Inc. He has
more than 37 years of experience in senior executive positions, including
service as chief executive officer in a number of prominent Canadian
companies.
Cyrus Madon - Mr. Madon is Managing Partner of Tricap Management Limited.
He has pursued merchant banking and corporate advisory activities since
joining Brascan in 1999. Before that he served as chief financial officer of
Royal LePage. Mr. Madon has acquired considerable experience in corporate
finance and capital markets.
Tony Molluso - Mr. Molluso is President and CEO of Concert Industries. He
has gained extensive senior management experience in a number of companies
engaged in heavy manufacturing and other activities. He has also been involved
in a successful corporate turnaround and has focused on relationships with
customers and suppliers.
The proposed member of the board named by Sunrise is:
Laurie Bennett, CA - Mr. Bennett is a retired audit partner of Ernst &
Young LLP. A highly regarded member of the audit community, he has managed the
audits of a number of Canada's largest companies, with a particular focus on
the manufacturing sector, among others.
The proposed member of the board named by Appaloosa is:
Steve Cohn - Mr. Cohn is Managing Director of Alvarez & Marsal, LLC of
New York. He has more than 15 years leadership experience in restructuring
situations, serving in such roles as chief restructuring officer, financial
advisor, and chief financial officer. He has also held positions in operations
and finance, and served as chief operating officer.
The other proposed members of the board are:
Pierre Dupuis - Mr. Dupuis is the recently retired Chief Operating
Officer of Dorel Industries Inc., a global consumer product company. He has
extensive management experience in heavy manufacturing, having served as
president, chief operating officer, director, trustee or in other senior roles
with a number of leading Canadian corporations.
Courtney Pratt - Mr. Pratt is currently President and Chief Executive
Officer of the Company. His previous experience includes service in such roles
as chairman, president, and chief executive officer of a number of prominent
companies. The three significant equity sponsors have indicated their desire
that he serve as chairman of the new board.
Stelco's next chief executive officer - The three significant equity
sponsors have indicated their desire that the next chief executive officer
join the new board once that position is filled.
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
