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Latest Monitor Report Available for Stelco Restructuring

09/21/2004 - Stelco Inc. announced the recent filing of the Ninth Report of the Monitor for the company's Court-supervised restructuring.

Stelco Inc. announced the recent filing of the Ninth Report of the Monitor for the company's Court-supervised restructuring.

The Report provides an update in such areas as financial and operational performance, cash flow forecasts and restructuring measures. The full text of the Report, including a summary of Stelco's production and shipping activity during July and August, can be accessed online or through Stelco's website.

At its Sep. 24 court hearing, Stelco will seek an extension of the Stay Period to the end of Nov. 26, 2004.

The Monitor states in its Report that the extension is necessary, noting that an extension would provide time for Stelco to develop a process for raising capital to address its debts and obligations, as well as to fund its essential capital expenditure program.

The Monitor offers its view that the extension requested is appropriate in the circumstances and recommends that the request be granted.

The Report references the mandate of UBS Securities Canada Inc., which, as announced in the Eighth Report of the Monitor, has been engaged to provide financial advisory and investment banking services to the company. The Report states that UBS, in consultation with the Monitor, will assist Stelco in conducting a review of all possible alternatives to raise the funds required in connection with its restructuring. This would include raising the funds necessary to implement its essential capital expenditure program.

The Report also identifies several matters in which Stelco will seek Court approval at a hearing to be held on September 24, 2004. These matters include the recently concluded agreement for the sale of real property owned by CHT, a Stelco subsidiary.

At the same hearing, Stelco will also seek an extension of the Stay Period, which will otherwise expire on September 30, 2004, to the end of November 26, 2004. The Monitor states in its Report that the extension is necessary for the company to continue negotiations with various stakeholders in order to develop a plan of arrangement. The Monitor also notes that an extension will provide time for Stelco to develop a process for raising capital to address its debts and obligations, as well as to fund its essential capital expenditure program. The Monitor offers its view that the extension requested is appropriate in the circumstances and recommends that the request be granted.

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