Judge rejects US Steel’s effort to quarantine some of its Canadian branch’s debt claims

Friday, 21 August 2015 01:39:48 (GMT+3)   |   San Diego
       

The judge overseeing the restructuring of US Steel’s Canadian operations rejected this week the company’s effort to quarantine objections to its debt claims and deal with them in a separate case.

Justice Herman Wilton-Siegel said there were "good reasons" to keep the objections as part of the restructuring case, chief among them keeping the cases together provides a better chance of finding a solution to keep operations in Canada running.

Lawyer Gordon Capern, who represented the USW in the action, said: "The union views this decision as an important step in ensuring that the court takes into account the manner in which U.S. Steel operated US Steel Canada as the CCAA (creditor) process moves forward."

Reclassifying some portion of the company’s debt claims is important to the objectors because the company is widely expected to try to buy the Lake Erie Works and to pay for the transaction by cancelling some of the debt it claims to be owed.


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