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Slater Steel Obtains Court Approval for CCAA Extension

01/13/2004 - Slater Steel Inc. announced that the Ontario Superior Court of Justice has extended the Court protection period granted to the company under the Companies' Creditors Arrangement Act (CCAA) to March 1, 2004. The extension is intended to allow Slater to proceed with an orderly wind-down of both the Atlas Stainless Steels and Hamilton Specialty Bar facilities under the protection of the CCAA.

RBC Capital Markets will continue to seek buyers for each of the Atlas Stainless Steels and Hamilton Specialty Bar facilities.

Despite commencement of the wind down, and in order to preserve as much as possible the value of such facilities for prospective buyers, the company will also seek to enter into negotiations with the unions representing the hourly employees at these facilities in order to significantly lower the labor costs.

In addition, the company will also continue its efforts to obtain extensions from the Ontario and Quebec governments of the periods for funding the solvency deficits of the defined benefit pension plans for Hamilton Specialty Bar and Atlas Stainless Steels.

Slater Steel Inc. announced that the Ontario Superior Court of Justice has extended the Court protection period granted to the company under the Companies' Creditors Arrangement Act (CCAA) to March 1, 2004. The extension is intended to allow Slater to proceed with an orderly wind-down of both the Atlas Stainless Steels and Hamilton Specialty Bar facilities under the protection of the CCAA.

Slater said that while the details have not yet been finalized, the company is working with customers, its lenders and the Monitor to develop a systematic approach to winding down the two facilities.

Slater also announced that six of its ten directors had resigned. Continuing as directors are Anthony Griffiths, who remains Chairman of the Board, Paul Kelly, Dennis Belcher and Pierre MacDonald. The remaining directors are well qualified to guide the Company through the wind down of the Hamilton and Tracy facilities and the sale of assets of the Company.

Slater Steel is a minimill producer of specialty steel products with facilities located in Fort Wayne, Ind.; Hamilton and Welland, Ont.; and Sorel-Tracy, Que.