The Superior Court of Justice (Ontario) approved a creditors' Claims Procedure Process for Stelco Inc.’s restructuring. Approval was granted during a hearing held Friday, Dec. 17.

The Claims Procedure Order, which was outlined in the 14th Report of the Monitor, outlines the procedures by which claims against Stelco will be called for, reviewed and finally determined.

Hap Stephen, Stelco's Chief Restructuring Officer, said, "Today's decision is a positive one for our creditors and for the restructuring process. It will quicken matters by enabling us to address claims at the same time as a restructuring plan is developed. It will provide meaningful information about the claim amounts that have to be addressed. And it will simplify the voting process in respect of any proposed restructuring plan."

Under the process approved by the court, any person who has a claim against Stelco, or against its subsidiaries also under Court protection — with the exception of certain types of claims that will not be subject to the process at this stage of the proceedings — must submit a Proof of Claim to the Court-appointed Monitor by 5:00 p.m. (Eastern Time) on January 31, 2005. Claims that are not received by that date will be extinguished and the creditors asserting such claims will not be entitled to participate in any restructuring plan.

Stelco and its subsidiaries under Court protection will be mailing a proof of claims package and instruction letter to all known creditors during the next two days. In addition, a copy of the Court Order, the proof of claim document package and the instruction letter will be on the website of Stelco's legal counsel. Creditors who do not receive a claim package, or any other interested parties, can obtain the information through the website. A Notice to Creditors will be published twice in a number of newspapers in Canada, the United States and Europe before January 15, 2005.

Individual Bondholders of Stelco are not required to file Proofs of Claim at this time as the trustees under the applicable trust indentures are authorized to file aggregated Proofs of Claim for each series of Bonds.

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.