Stelco Inc. announced the filing of the Tenth Report of the Monitor for the company's Court-supervised restructuring.

The Report provides an update on a number of matters, including USWA Local 8782’s issuance of 90-day notice of a potential work stoppage; Stelco and Stelwire’s notice of termination of the agreement between Stelco, Stelwire and the USWA Locals (discussions are ongoing); concerns raised by customers (including General Motors); and the recent strike vote at AltaSteel. Many of these issues have been announced by the company or otherwise made public in recent weeks.

The Report devotes considerable attention to the company's proposal for a capital raising process that will be the subject of a Court hearing on October 19, 2004. The proposed capital raising process, which would be conducted in two phases, contemplates the following possible capital raising transactions with potential investors, financiers or acquirers:

1. Raising a minimum of $200 million of new equity in the restructured Stelco through an underwritten rights offering and/or an equity solicitation process.
2. Sale of non-core subsidiaries including Stelpipe, Stelwire, Stelfil, AltaSteel, Norambar and Camrose.
3. Joint ventures involving Stelco.
4. Any combination of the above, including a sale of Stelco or the core businesses.

If the proposed process is approved, proposals would be due in late November, with selection of bidders taking place by mid-December and due diligence completed by the end of January 2005. Ernst & Young Inc., the Court-appointed Monitor, concurs with Stelco that it is imperative that the process be commenced; expresses the view that the proposed process is open, fair, reasonable and provides for substantial stakeholder input; and recommends that the Court approve the process.

The full text of the Report can be accessed online or through a link available on Stelco's 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