Stelco Inc, formerly U. S. Steel Canada Inc, announced that the Ontario Superior Court of Justice has sanctioned its restructuring arrangement and transaction with Bedrock Industries Group, a U.S. private equity firm. The deal is expected to close this month, resulting in the Canadian steel producer’s emergence from creditor protection. Stelco agreed to restructure with Bedrock in 2016, shortly after United States Steel Corp (NYSE: X) agreed to transfer ownership to the investor. Bedrock previously said it will continue operating Stelco’s plants in Hamilton and Nanticoke, Ontario.
Court Sanctions Stelco (U. S. Steel Canada) Plan of Arrangement and Transaction with Bedrock
HAMILTON, ON – (June 9, 2017) – 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.
For further information:
Joel Shaffer, Longview Communications: email@example.com
Trevor Harris, Director, Government and Public Affairs: firstname.lastname@example.org
Photo courtesy of Stelco Inc