Court orders removal of two Stelco board members

Court orders removal of two Stelco board members

The Ontario Superior Court of Justice ruling on Friday, February 25, 2005, reaffirmed the court's confidence in Canadian steel giant Stelco's restructuring. The decision was a mixed victory for the company's salaried retirees. While the court rejected the request for the establishment of a Bid Review Committee, the judge did overturn the appointment of Roland Keiper and Michael Woollcombe to the Board of Directors. Many of Stelco's salaried retirees opposed Keiper's and Woollcombe's appointments because the retirees feared the new Stelco board would restructure the company in such a way that would end up hurting the retirees. Stelco currently faces a pension shortfall of more than $1 billion. The bidding process of Stelco is expected continue without any further interruption. Russia's Severstal seems to be the favorite since it won the backing of steelworkers unions.