Stelco rebuffs debentureholders' restructuring proposal

Stelco rebuffs debentureholders' restructuring proposal

Legally insolvent Canadian steelmakers Stelco Inc. has turned down a restructuring proposal from it senior debentureholders citing lack of support. "The board has concluded that the proposal would not garner the stakeholder support required to ensure an achievable plan that would lead to an effective restructuring of the company," said a company statement. Stelco recently received another short extension to its bankruptcy protection until December 12. The company has been under such protection for nearly two years. Several possible scenarios are currently running through the rumormill including pushing the company into receivership. Another possibility would be to sell Stelco's primary operations in Hamilton and Nanticoke to allow them to continue to operate.