U. S. Steel agrees to sale of U. S. Steel Canada to Bedrock Industries

United States Steel Corp (NYSE: X) (U.S. Steel) has agreed to the sale of U. S. Steel Canada Inc to Bedrock Industries Group, a U.S. private equity firm. The deal, which was approved by the Ontario government in September, will provide U.S. Steel with about US$126 million for its secured and unsecured claims, submitted as part of U. S. Steel Canada’s application for creditor protection in 2014. It will also be released from specific obligations. Bedrock, which will restructure U.S. Steel Canada, previously said it will continue operating the company’s plants in Hamilton and Nanticoke, Ontario.


U. S. Steel And Bedrock Industries Agree To Restructuring And Sale Of U. S. Steel Canada

PITTSBURGH, Nov. 1, 2016 /PRNewswire/ — United States Steel Corporation (NYSE: X) (“U. S. Steel” or “the Corporation”) announced today that it has agreed to proposed terms with Bedrock Industries Group LLC (“Bedrock”) regarding the sale and transition of ownership of U. S. Steel Canada, Inc. (“USSC”) to Bedrock. The transaction is subject to satisfactory completion of customary definitive documentation and requisite court and other approvals.

On Sept. 16, 2014, USSC applied for relief from its creditors pursuant to Canada’s Companies’ Creditors Arrangement Act (“CCAA”). As part of the CCAA proceedings, U. S. Steel submitted secured and unsecured claims of approximately CAD$2.2 billion. Should the transaction be approved by the Ontario Superior Court of Justice and ultimately close, U. S. Steel will receive approximately $126 million in satisfaction of its secured claims, including interest, and unsecured claims. The proposed terms also include an agreement to provide mutual releases among key stakeholders, including a release of all claims against U. S. Steel regarding environmental, pension and other liabilities.

As part of the proposed transition in ownership, U. S. Steel will continue to provide certain shared services to USSC and will enter into an agreement to supply USSC with all of its requirements for iron ore pellets through 2021.

This news release contains certain information that may constitute forward-looking statements within the meaning of Section 27 of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. All statements other than statements of historical fact are forward-looking statements.

Generally, we have identified such, forward-looking statements by using the words “believe,” “expect,” “intend, ” “estimate,” “anticipate, ” “project, ” “target, ” “forecast,” “aim, ” “should,” “will,” and similar expressions or by using future dates in connection with any discussion of, among other things, trends, events or developments that we expect or anticipate will occur in the future. However, the absence of these words and similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only the Corporation’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside the Corporation’s control. It is possible that the Corporation’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.

Source: U. S. Steel

Photo courtesy of Reuters/Andrew Wallace