NATIONAL STEEL HEADLINESSteel Producers /
National Steel
Stelco Authorized to Access Capital Markets
Mar. 31, 2005 Stelco Inc. has received Court authorization to access the capital markets in pursuit of new capital in the form of equity or a combination of debt and equity.
| Stelco also sought — and was granted — approval to proceed with the previously-disclosed agreement to sell its 40% ownership interest in the Camrose Pipe Co. to Canadian National Steel Corporation, a subsidiary of Oregon Steel, which owns the other 60% of Camrose. |
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At its hearing, the Superior Court of Justice (Ontario) discontinued the previous capital raising process as it relates to Stelco's integrated steel business and authorized the company, with the assistance of its advisors, to seek to raise new money in the capital markets.
Hap Stephen, Stelco's Chief Restructuring Officer, said, "We believe that capital markets will provide the money we need to fund key projects, to support a restructuring plan, and to facilitate our successful emergence from the CCAA process."
Stelco indicated that the amount of capital it is able to raise will be determined, in part, by the markets' views of the company's restructuring plan and its future prospects, including resolution of Stelco's pension liability. As a result, Stelco will continue its ongoing discussions with key stakeholders to seek a level of consensus concerning a restructuring plan that will support its capital-raising activity.
Stelco says it will seek to file a restructuring plan with the Court as quickly as practicable, hopefully before or by May 30, 2005.
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.