Slater Steel received permission to reduce its operations

Slater Steel received permission to reduce its operations

North American specialty steel producer Slater Steel which filed for bankruptcy protection in June, 2 2003 in order to settle a restructuring plan related to the company's debt, capital and cost structures, has received court permission for reducing its operations. With this permission Slater Steel has the right to stop, reduce or close its operations; take actions against possible causes of the restructuring plan and sell its non-profit assets up to C$ 500.000 individually and C$ 2 million in total without any court approval. After filing for bankruptcy protection, the company secured C$ 45 million debtor-in-possession financing facility which is expected to be well enough for the financing throughout the restructuring process. Besides, the aforementioned rights given by the superior court of justice are subject to the terms of this debtor-in-possession financing. Slater Steel, adversely affected by the current economic conditions in the specialty steel industry and decrease in shipments, produces mainly bar and flat rolled stainless steel products, carbon and low alloy steel bars.