HAMILTON, ON, Dec. 9, 2016 /PRNewswire/ - Stelco ("Stelco" or "the Company") announces that it has entered into an Acquisition and Plan Sponsor Agreement ("PSA") with Bedrock Industries Group LLC ("Bedrock") that is intended to set the framework for a proposed restructuring transaction (the "Proposed Transaction") between the Company, Bedrock and other key stakeholders, and that it is seeking approval from the Ontario Superior Court of Justice to move forward to finalize the terms of the Proposed Transaction by way of a plan of arrangement under the Companies' Creditors Arrangement Act ("CCAA"). Stelco, formerly U. S. Steel Canada, has been operating under CCAA protection since being granted an initial stay of proceedings in September of 2014. The stay period was recently extended to March 31, 2017.
"Entering into a PSA with Bedrock is a major step forward as efforts to reach a going-concern transaction keep gaining momentum," said Bill Aziz, Chief Restructuring Officer, Stelco. "Constructive engagement from interested stakeholders is welcomed and appreciated. At Stelco, our focus continues to be on working with Bedrock and other stakeholders to complete the court-supervised restructuring, subject to various approvals."
The Province of Ontario, U. S. Steel and United Steelworkers Local 8782 and 8782(B) each previously reached separate agreements in principle with Bedrock, all subject to various conditions, which form the basis of the Proposed Transaction reflected in the PSA. The Province of Ontario has also agreed with Stelco to support the pursuit of the Proposed Transaction contemplated by the PSA.
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 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 full 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.