Stelco readies new restructuring plan

Stelco readies new restructuring plan

Legally insolvent Canadian steelmaker Stelco Inc. has said it will detail a new financial restructuring plan on Friday clearing the way for its exit from bankruptcy protection. Stelco claims the new plan will attempt to balance many of the so-called inconsistencies set forth by the judge overseeing the 18-month restructuring ordeal. At the center of the controversy is a CA$1.3 billion pension fund deficit. The union and the company have thus far failed to reach a suitable compromise on how to deal with the deficit. While the union squarely back a plan set forth by Tricap Management Ltd. which would immediately slash the pension shortfall by CA$500 million, the company wants to take a more balanced approach that pays off creditors by selling debt and equity. Recently the Canadian government voiced its support for the Tricap plan because they most adequately address the province’s concerns.