According to local media, the province of Ontario announced today that it has signed an agreement with equity fund Bedrock Industries LP to restructure US Steel Canada.
Under the agreement, which still requires approval from other stakeholders and a Canadian court, Bedrock will reportedly purchase and continue operating US Steel Canada's plants in Hamilton and Nanticoke, which employ a total of 2,000 workers and have a total capacity of 2.6 million tons of steel per year.
"The deal announced today is far from perfect, given the challenges that arise from such a lengthy and complex insolvency process," said United Steelworkers Ontario director Marty Warren, in a statement. "However, we believe this could lead to a good final deal for the union's members and retirees."
Bedrock Industries LP is a private equity fund focused on metals, mining and natural resources. Reports indicate that the company must also complete negotiations with the United Steelworkers union as part of the agreement.