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Stelco Seeks Approval to Sell Interest in Camrose Pipe

03/25/2005 - Stelco Inc. has applied for a Court order approving the sale by Stelcam Holdings Inc., a wholly-owned subsidiary of Stelco, of its partnership interest in Camrose Pipe Co. to Canadian National Steel Corp. (CNSC). CNSC, an indirect subsidiary of Oregon Steel Mills Inc., is the other partner in the Camrose Pipe Partnership.

Stelco has also filed Court documents seeking approval to discontinue the capital raising process as it relates to the core business and Stelco Inc., and replace it with a financing plan.

In an affidavit, Hap Stephen, Stelco's Chief Restructuring Officer, noted that Stelco should be able to return to Court by no later than May 30, 2005 to file a CCAA plan and seek directions with respect to meetings to obtain stakeholder approval of the CCAA plan.

Stelco is seeking to complete its restructuring as quickly as possible and will file a CCAA plan sooner to the extent practical.

This motion will also be heard by the Court on March 30, 2005.

Stelco Inc. has applied for a Court order approving the sale by Stelcam Holdings Inc., a wholly-owned subsidiary of Stelco, of its partnership interest in Camrose Pipe Co. to Canadian National Steel Corp. (CNSC). CNSC, an indirect subsidiary of Oregon Steel Mills Inc., is the other partner in the Camrose Pipe Partnership.

Camrose Pipe produces steel pipe using two pipe mills in Camrose, Alberta. Camrose Pipe operations are managed by CNSC.

Ernst & Young Inc., Stelco’s Court-appointed Monitor, has filed its twenty-second Report of the Monitor with the Court recommending that the Court approve the sale. The motion will be heard by the Court on March 30, 2005.

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.