Stelco enters into acquisition and sponsorship plan with Bedrock Industries

Monday, 12 December 2016 00:32:42 (GMT+3)   |   San Diego
       

Hamilton, Ontario-based Stelco announced this week that it has entered into an Acquisition and Plan Sponsor Agreement (PSA) with Bedrock Industries Group LLC that is intended to set the framework for a proposed restructuring transaction between the company, Bedrock and other key stakeholders.
 
The company 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. Stelco, formerly US 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, US 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.

Similar articles

Glencore Plc pips India’s JSW Steel in acquiring coking coal assets in Canada

15 Nov | Steel News

Bathurst Resources to acquire Tenas coking coal project in Canada

14 Sep | Steel News

Canadian AIM buys 14 scrap yards in Mexico from Chinese Chiho-Tiande

03 Jan | Steel News

Tree Island Steel to sell California wire plant

15 Dec | Steel News

Russel Metals to acquire US-based service center group

05 Nov | Steel News

Algoma Steel to merge with Legato Merger Corp.

25 May | Steel News

Russel Metals and Marubeni-Itochu merge Canadian OCTG and line pipe businesses

15 Apr | Steel News

Russel Metals to acquire Wisconsin-based service center

22 Dec | Steel News

Canada-based Champion Iron to acquire Kami project

18 Nov | Steel News

ArcelorMittal mulls sales of infrastructure assets in Canada

23 Jun | Steel News