Stelco Inc.’s court-appointed Monitor has filed its Seventeenth Report regarding the company's Court-supervised restructuring. The Report outlines an extension of Stelco’s credit facilities, progress on the sale of Stelco Plate Co. assets, and simplification of Stelco’s corporate structure.

The Monitor reports that Stelco has secured an extension to its existing credit facilities and the DIP facility. These had been scheduled to expire on January 29, 2005. Under the extension noted in the Report, they will now expire on the earlier of November 20, 2005 and the effective date of a Plan of Arrangement or Compromise under the company's Court-supervised restructuring.

The Monitor reports that a potential purchaser for the Stelco Plate Co. Ltd. assets has been selected, and that the terms of an agreement of purchase of sale are now being negotiated. Stelco Plate is in default of its loan facilities with its secured lenders by approximately $26.7 as of January 29, 2004, the date on which Stelco initiated its Court-supervised restructuring. Located in the Hamilton facility, the Plate Mill was idled in April 2003 as it was no longer viable under market conditions for plate. It is anticipated that the process will be finalized by the end of this month.

The Monitor also reports that Stelco has taken additional steps to simplify its corporate structure and to realize potential income tax savings. The Report notes that the company has initiated the wind-up of certain wholly owned corporate entities, through which Stelco holds its ownership interests, and under which the Z-Line Partnership (which provides hot dip galvanizing services to Stelco) and Bloomco (which provides cast bloom reheating services to the company) operate. The underlying business processes will be unaffected, the only change being that their assets will become assets of Stelco itself. Stelco will continue to own a 60% interest in Z-Line. Neither of these subsidiaries was included in the company's CCAA filing. The Report notes that this action does not impact Stelco's stakeholders as there are no third party liabilities associated with these corporate entities, other than tax-related ones.

Full text of the Monitor’s Seventeenth Report can be accessed through links available on the Court Monitor’s website or Stelco's website.

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