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Judge OKs Stelco Sale
06/09/2017 - A Canadian judge approved Stelco’s restructuring plan and sale to U.S. investment firm Bedrock Industries Group on Friday, a decision that will allow the steelmaker to emerge from creditor protection as a standalone business.
“Today marks the turning of the page on a new chapter for Stelco," Stelco president and general manager Michael A. McQuade said in a statement. "I would like to thank all of our employees for their resilience throughout this process and for their effort in creating the value in our business that was such a critical factor in achieving this successful outcome.
"Looking forward, this transaction with Bedrock will allow Stelco to compete and succeed in the North American steel market. While our industry continues to face a variety of headwinds, Stelco is well positioned for a bright and prosperous future," he said.
Acquired by United States Steel Corp. in 2007, Stelco is now poised to emerge from more than 2 ½ years of creditor protection.
The deal with Bedrock is to close by June 30, but some of the finer points still need to be worked out, according to the CBC, Canada’s public broadcaster.
Some of those details relate to the formation of a land trust, which will own the property on which Stelco’s Hamilton facility sits. Stelco will lease back some of the property while the land trust looks to remediate and redevelop unused portions. Proceeds from development deals will be plowed back into the pension fund, which faces a short fall of around CA$ 1 billion.
The CBC has more on Friday’s decision here.
"Looking forward, this transaction with Bedrock will allow Stelco to compete and succeed in the North American steel market. While our industry continues to face a variety of headwinds, Stelco is well positioned for a bright and prosperous future," he said.
Acquired by United States Steel Corp. in 2007, Stelco is now poised to emerge from more than 2 ½ years of creditor protection.
The deal with Bedrock is to close by June 30, but some of the finer points still need to be worked out, according to the CBC, Canada’s public broadcaster.
Some of those details relate to the formation of a land trust, which will own the property on which Stelco’s Hamilton facility sits. Stelco will lease back some of the property while the land trust looks to remediate and redevelop unused portions. Proceeds from development deals will be plowed back into the pension fund, which faces a short fall of around CA$ 1 billion.
The CBC has more on Friday’s decision here.
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