Court approves Stelco's restructuring plan

Court approves Stelco's restructuring plan

Stelco Inc. has announced that its pending restructuring plan was approved by Ontario’s Supreme Court of Justice last Friday evening. After much deliberation, the Court found that Stelco has acted in accordance with all statutory requirements, has been diligent in its adherence to previous orders of the court, and that no act has been committed that is not authorized by the Companies' Creditors Arrangement Act. Stelco’s President and CEO Courtney Pratt stated, “This is wonderful news for Stelco, for our employees and retirees, for our other stakeholders, and for the communities in which we operate. The conclusion of our restructuring is now in sight. The new Stelco that emerges from this process will be much better positioned to become a viable and competitive steel producer for the long term. Stelco will do everything possible to reward the confidence that has been shown in the restructuring plan and in the future of this great company." The Court took time to ensure that the plan was fair to existing shareholders. It also required the company to show due proof that the plan itself was implementable. The stay period was also extended by the approved Sanction Order from January 31, 2006 until March 3, 2006.