Steelworkers Support New Lender for U.S. Steel Canada
Jul 18, 2015, 06:00 ET
TORONTO, July 18, 2015 /CNW/ - The United Steelworkers (USW) union is supporting a proposal by U.S. Steel Canada to secure a new lender for the company's operations while it remains under creditor protection.
U.S. Steel Canada has filed a motion in Ontario Superior Court seeking the replacement of its American parent, U.S. Steel Corp., as the debtor-in-possession (DIP) lender for the Canadian operations during the restructuring process.
"We have previously made our concerns known to the court-appointed monitor that U.S. Steel has had too much control over the restructuring process and potential sale of its Canadian operations," said USW Ontario Director Marty Warren.
"In principal we support the replacement of U.S. Steel in favour of an alternative, independent DIP lender for U.S. Steel Canada during the restructuring process," Warren said.
"We believe the sale and restructuring process has been skewed in U.S. Steel's favour. We will continue to seek a fair and just process to ensure the best possible outcome for the workers, pensioners and communities whose futures are at stake."
The USW also has been actively seeking greater access to key information related to U.S. Steel Canada's potential sale and restructuring, including details of proposals by 39 potential bidders for the company's assets.
U.S. Steel Canada was granted creditor protection under the Companies' Creditors Arrangement Act (CCAA) last September.
SOURCE United Steelworkers (USW)
For further information: Marty Warren, USW District 6 Director, 416-243-8792, [email protected]; Bob Gallagher, USW Communications, 416-544-5966, 416-434-2221, [email protected]
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