Stelco Inc.’s court-appointed Monitor has filed its Sixteenth Report regarding the company's Court-supervised restructuring. The Report outlines the Court-appointed Monitor’s recommendation that the deadline for parties to file binding offers for Stelco's core business, non-core subsidiaries, or both be extended from January 31, 2005 to February 14, 2005.

In support of its recommendation, the Monitor notes the high level of interest shown by prospective bidders as well as the concern expressed by certain parties that the current timeline may not provide enough time in which to conduct their due diligence. The Monitor also cites the volume of work required to assist parties engaged in the due diligence process. This activity includes the provision of information plus the scheduling and conduct of meetings, management presentations, and tours of facilities.

The Monitor notes that Stelco has consulted with Deutsche Bank, which submitted the approved 'stalking horse' bid, about the proposed extension of the filing deadline. The Report also notes that the two parties have agreed to this extension and, as a result, to the amendment of certain timelines contained in the Deutsche Bank commitment.

The Report notes that Stelco will seek a Court Order amending the Capital Process Order. The proposed amendments would extend the deadline for filing binding offers in the capital raising process to February 14, 2005. Stelco will apply for this Order at a hearing to be held on January 17, 2005.

Stelpipe developments—The Monitor notes that two expressions of interest in Stelpipe Ltd. were filed after the stated deadline of December 1, 2004. The Monitor evaluated the proposals and determined that it was in the best interests of Stelpipe and its stakeholders to invite those late parties to participate in the next phase of the process subject to approval by the Court. In the Court Order that Stelco is seeking to amend the Capital Process Order, the company will also propose an amendment to invite the two late potential investors in Stelpipe to participate in Phase Two of the process.

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.