HAMILTON, ON, June 9, 2017 /PRNewswire/ - Stelco, the name under which U. S. Steel Canada Inc. carries on business ("Stelco" or the "Company") announces that the Ontario Superior Court of Justice (the "Court") has sanctioned its Plan of Compromise, Arrangement and Reorganization (the "Plan") and transaction (the "Transaction") between the Company, Bedrock Industries Group LLC ("Bedrock") and other key stakeholders. The Company is now working towards closing the transaction by June 30, 2017 and emerging from protection under the Companies' Creditors Arrangement Act ("CCAA") at that time.
"We have diligently pursued the best possible outcome for almost three years and I sincerely appreciate the constructive engagement from many stakeholders," said Bill Aziz, Chief Restructuring Officer, Stelco. "In particular, I would like to recognize the sustained and focused efforts of Stelco's leadership team and employees across the organization. Despite the uncertainty, the Company's dedicated people kept moving the business forward to the point that it is now poised to emerge as a strong, independent Canadian steel producer."
Aziz concluded: "I would also like to recognize the significant efforts from the Province of Ontario and Premier Kathleen Wynne, Finance Minister Charles Sousa and the Premier's Business Advisor, Ed Clark. The transaction with Bedrock simply would not have been possible without the support from the Province."
"Today marks the turning of the page on a new chapter for Stelco," said Michael A. McQuade, President and General Manager of Stelco. "I would like to thank all of our employees for their resilience throughout this process and for their effort in creating the value in our business that was such a critical factor in achieving this successful outcome."
McQuade concluded: "Looking forward, this transaction with Bedrock will allow Stelco to compete and succeed in the North American steel market. While our industry continues to face a variety of headwinds, Stelco is well positioned for a bright and prosperous future."
Stelco has been operating under CCAA protection since being granted an initial stay of proceedings in September of 2014. Ernst & Young Inc., as the Court-appointed Monitor, continues to oversee the business and financial affairs of the company during the CCAA process. Current Court filings, including the Plan of Compromise, Arrangement and Reorganization, Information Circular and information regarding a Supplementary Claims Process and other information relevant to the restructuring process is available on its website at www.ey.com/ca/USSC.
Stelco will continue to provide updates as developments warrant.
Powered by Canadian craftsmanship, Stelco's operations in Hamilton and Nanticoke reflect the strength of each community. Together employing more than 2,200 people, these fully integrated, industry-leading facilities are among the most safe, environmentally progressive, and productive steel plants in the world. Hamilton Works is located on the shore of Lake Ontario in Hamilton, Ontario. Lake Erie Works is about an hour's drive south, and is located in Nanticoke, Ontario, on the shores of Lake Erie. Stelco produces high-quality steel that is used primarily in the North American automotive, construction, infrastructure, appliance, manufacturing and pipe and tube industries.