Stelco obtains extension of stay period until July 18, 2005

About this update from Starr Peak Mining Ltd

HAMILTON, ON, June 27 /CNW/ - Stelco Inc. (TSX:STE) today was granted an Order of the Superior Court of Justice (Ontario) extending the stay period under its Court-supervised restructuring from July 8, 2005 until July 18, 2005. The Court-appointed Monitor had stated that an extension would be in the interest of all stakeholders and had recommended that the request be granted by the Court. In addition to granting the extension, the Court ordered the parties to take a one week 'cooling off' period until July 4, 2005. During this period the parties are to reflect on the content of the recent mediation conducted by the Hon. George Adams and to consider the alternatives for Stelco as a going concern. While stakeholders may meet during this week should they so wish, no formal discussions will be conducted. After this week, the parties will participate in a dialogue to be organized by the Court-appointed Monitor. A progress report is to be provided to the Court by July 18, 2005, at which time a further stay may be requested. Courtney Pratt, Stelco President and Chief Executive Officer, said, "This extension will enable the Company to continue proceeding in such matters as conducting discussions with stakeholders, completing the claims procedure, and proposing a restructuring plan based on discussions with stakeholders. "We've already indicated the steps that we will follow in the coming days. First, proceed to continue the dialogue with other parties. Second, examine the proposals that could form the basis of a restructuring plan. Third, pursue a solution that is in the interests of all stakeholders, not just one or more groups. And, fourth, seek to emerge from CCAA as a viable and competitive steel producer as quickly as possible. "This process will include continuing our work to resolve the pension funding issue and pursuing a fair and reasonable collective agreement with USWA Local 8782 at Lake Erie." Mr. Pratt noted that all parties must work together and in the same direction toward the goal of a positive outcome. He stated that the softening of steel market conditions and the significant drop in steel prices - about which the Company had warned stakeholders for more than a year - explain the sense of urgency Stelco has tried to inject into the restructuring process. "As recently as last week the Court-appointed Monitor wrote that Stelco's future financial ...

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