HAMILTON, ON, March 28 /CNW/ - Stelco Inc. announced today that it has
sought and obtained an Order concerning the issuance of new securities and
other consideration to affected creditors in connection with the Company's
restructuring plan.
At a hearing held this morning, the Superior Court of Justice (Ontario)
approved the terms and conditions of the issuance and exchange of these
securities and cash in exchange for the affected claims. The Court also
declared that those terms and conditions are fair to the affected creditors.
The consideration in question includes New Secured Floating Rate Notes
("FRNs"), New Common Shares, New Warrants and cash.
As Stelco has disclosed on previous occasions, the Order will enable the
Company to utilize an exemption under U.S. securities law concerning the
issuance and exchange of the FRNs. A similar Order had been granted on
March 9, 2006. In the meantime, and as a result of discussions among relevant
stakeholders, Stelco has made certain amendments to its restructuring plan,
including changes to the FRNs. The Company was advised by U.S. securities law
counsel that, in light of these amendments, an Order similar to that obtained
on March 9, 2006 was required.
About Stelco
Stelco is one of Canada's longest-established steel companies. It is
currently in the final stages of a Court-supervised restructuring. This
process is designed to establish the Company as a viable and competitive
producer for the long term. The new Stelco will be focused on its two Ontario-
based integrated steel businesses located in Hamilton and in Nanticoke. These
operations produce high quality value-added hot rolled, cold rolled, coated
sheet and bar products. 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 2005 Annual
Report. To learn more about Stelco and its businesses, please refer to our Web
site at www.stelco.ca.
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