Stelco Inc.’s court-appointed Monitor has filed a Second Supplemental Eleventh Report regarding the company's Court-supervised restructuring. The Report provides an update on the amended Deutsche Bank commitment letter announced by Stelco, including the Monitor's views regarding the commitment.

In its latest report, the Monitor offers its views on the concern raised by some stakeholders that the amended Deutsche Bank commitment does not address some of the key underlying issues that caused Stelco's financial challenges. The Report notes that Stelco has made little progress in developing consensus with stakeholders as to how those challenges might be addressed as a result of many key stakeholders not being prepared to agree to compromises. The Monitor observes that Stelco cannot remain in CCAA proceedings indefinitely.

The Report also notes that the Deutsche Bank amended commitment provides Stelco with a means to fund a CCAA Plan of Compromise or Arrangement for its stayed creditors, and capital with which Stelco can implement elements of the strategic capital plan deemed necessary for the company to improve its competitive position. The Monitor states that, in light of the currently strong steel market, it is in the best interest of all Stelco stakeholders to actively pursue a restructuring transaction on a timely basis.

The Report also notes that the wider capital raising process may generate other offers to finance or acquire Stelco on terms that are superior to those proposed by Deutsche Bank. The Monitor indicates that it will oversee that process and participate in evaluating offers.

The Monitor’s Second Supplemental Eleventh Report is available on the McCarthy Tetrault website.

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.