HAMILTON, ON, Oct. 8, 2014 /CNW/ - U. S. Steel Canada Inc. ("U.S. Steel Canada" or "the Company") has obtained an extension of the stay of proceedings, initially granted by Justice Wilton-Siegel of the Ontario Superior Court of Justice (the "Court") under the Companies' Creditors Arrangement Act (CCAA) on September 16, 2014, to January 23, 2015.
The Court also approved a $185 million debtor-in-possession (DIP) credit facility from U. S. Steel Holdings Inc., which will provide requisite funding for the Company to carry on business as usual as it moves through the restructuring process. The DIP financing is expected to fund the anticipated needs of the Company through the end of December 2015.
"The extension of the stay period provides time for U. S. Steel Canada to engage in discussions with stakeholders to explore restructuring options and reach consensual restructuring solutions where possible," said William Aziz, Chief Restructuring Officer for U. S. Steel Canada. "The DIP financing will enable the Company to carry on business in the ordinary course, continue to meet its obligations to employees and suppliers, provide payments for pensions and benefits to retirees, and ensure that customers have a continuous source of high quality steel supply while the Company operates under CCAA."
"The extension, together with the DIP Financing announced today, enhances the prospects for U. S. Steel Canada and its stakeholders to come together to develop a viable plan of arrangement for the business," said Michael McQuade, President and General Manager of U. S. Steel Canada. "In the meantime, we will continue to manufacture and deliver the high-quality steel products U. S. Steel Canada is known to produce."
U. S. Steel Canada will continue to carry on business as usual while it develops and implements comprehensive restructuring solutions. Ernst & Young Inc., as the Court-appointed Monitor will continue to oversee the business and financial affairs of the company during the CCAA process. The Monitor will make information relevant to the restructuring process available on its website at www.ey.com/ca/USSC as information becomes available.
About U. S. Steel Canada, Inc.
U. S. Steel Canada's operations are located at Lake Erie Works, a fully integrated steelmaking facility, and at Hamilton Works, home to cokemaking and finishing operations including our premier zinc-coating facility, the world-class Z-Line. U. S. Steel Canada has the capability of producing approximately 2.6 million tons of steel annually and employs approximately 2,000 people.
SOURCE: U.S. Steel Canada Inc.
For further information: Media Contacts: Trevor Harris, Director, Government and Public Affairs, U. S. Steel Canada, 905.577.4447, [email protected]; Joel Shaffer, Longview Communications, 416 649 8006, [email protected]