Court Upholds Stelco’s Initial Order
03/23/2004 -
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Court Upholds Stelco’s Initial Order
March 23, 2004 — The Ontario Superior Court of Justice rendered a decision upholding the Initial Order granted to Stelco Inc. on January 29, 2004 under the Companies' Creditors Arrangement Act.
In so doing, the Court dismissed a motion in which certain locals of the United Steelworkers of America (USWA) associated with Stelco sought to have the Initial Order rescinded.
“The Court has confirmed that Stelco was insolvent within the meaning of the Companies' Creditors Arrangement Act when it initiated its restructuring process,” said Courtney Pratt, President and CEO of Stelco. “This decision provides the certainty with which to proceed towards our goal of a positive outcome and a successful restructuring. I hope that everyone concerned, including the USWA, will work together and in a constructive manner as we pursue our common goal — a viable and competitive Stelco going forward.”
Stelco Inc., Canada's largest and most diversified steel producer, is involved in all major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses. Stelco has a presence in six Canadian provinces and two states of the United States. Consolidated net sales in 2002 were $2.8 billion.
