Judge Prescribes Mediation for Ailing U. S. Steel Canada
09/17/2015 - A judge has ordered United States Steel Corporation and others into mediation to hash out the future of the company's Canadian operation, U. S. Steel Canada (USSC), according to The Hamilton Spectator newspaper.
In his order, Ontario Superior Court Justice Herman Wilton-Siegel said he is sending the principal stakeholders into mediation to discuss the feasibility of a comprehensive agreement, the newspaper said.
USSC has been operating under creditor protection for one year, and there are several issues involved that are complicating the restructuring, the newspaper said. Among them is the potential sale of some or all of USSC's assets. Another is the
CAD$2.2 billion U. S. Steel claims it is owed by USSC.
Also at issue is U. S. Steel's plan to shift 180,000 tons of annualized production of higher-value automotive steel from Canada to its American mills. The court-appointed mediator in the case has said the shift could cost USSC CAD$40 million in revenue this year and CAD$160 million next year.
A retired associate chief justice is to oversee the mediation, which is to include U. S. Steel, USSC, the United Steelworkers and the Ontario provincial government.
Wilton-Siegel said a goal for the mediation should be to develop a business plan for USSC in the light of current circumstances, particularly the move to shift production.
USSC has been operating under creditor protection for one year, and there are several issues involved that are complicating the restructuring, the newspaper said. Among them is the potential sale of some or all of USSC's assets. Another is the
CAD$2.2 billion U. S. Steel claims it is owed by USSC.
Also at issue is U. S. Steel's plan to shift 180,000 tons of annualized production of higher-value automotive steel from Canada to its American mills. The court-appointed mediator in the case has said the shift could cost USSC CAD$40 million in revenue this year and CAD$160 million next year.
A retired associate chief justice is to oversee the mediation, which is to include U. S. Steel, USSC, the United Steelworkers and the Ontario provincial government.
Wilton-Siegel said a goal for the mediation should be to develop a business plan for USSC in the light of current circumstances, particularly the move to shift production.