HAMILTON, ON, March 7 /CNW/ - Stelco Inc. (TSX:STE) announced today that
it will seek an Order of the Superior Court of Justice (Ontario) in connection
with the issuance of New Secured Floating Rate Notes ("FRNs") under its
approved Companies' Creditors Arrangement Act restructuring plan ("the CCAA
plan"). The motion is scheduled to be heard on March 9, 2006.
In connection with the Court-approved reorganization of Stelco's
corporate structure under the Canada Business Corporations Act, it is
contemplated that each of the new limited partnerships will guarantee Stelco's
payment and performance in connection with the FRNs, and will provide security
for those guarantees.
The Order being sought, if granted, will approve the terms and conditions
of the issuance and exchange of the FRNs and other securities, expressly
including all guarantees of Stelco's or another obligor's payment and
performance in respect of the FRNs, and will declare that those terms and
conditions are fair to the affected creditors, in a manner similar to the
approval in the sanction order.
Notice of this motion is being provided so that affected creditors and
other persons are aware of the hearing and of the fact that the hearing is
open to them to be heard.
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
Ontario-based integrated steel business 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 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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