The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article published in the December 10, 2005 edition

U.S., local firms hold reins

The Hamilton Spectator
(Dec 10, 2005)

In the end, the power was right where insolvency experts said it would be -- in the hands of the bondholders, that group of sharply focused hedge funds, money managers and other institutions which form Stelco's largest group of creditors.

After endless delays, intense negotiations and, finally, a vote, the steelmaker's opportunity to emerge from bankruptcy protection rested on agreement from these powerful financiers and traders, who were wrangling constantly behind the scenes.

The major players now are:

* Appaloosa Management LP of Chatham, N.J. -- A $3-billion hedge fund founded in 1993 by one-time junk bond trader David Tepper, whose net worth is listed at $1.2 billion US on the Forbes magazine list of the 400 richest Americans.

Last year, Tepper donated $55 million to the business school where he received his MBA in 1982, Carnegie Mellon University in Pittsburgh.

That American steel city is Tepper's hometown. His first job out of business school was in the treasury department of Republic Steel, and he has since become a well known player in steel, mining, coal and other commodities.

While a trader at Goldman Sachs in New York City, Tepper focused primarily on bankruptcies and special situations, experience which now powers his forays into cases such as Stelco's.

Appaloosa has also recently taken an estimated $20- to $25-million stake in bankrupt auto parts company Delphi Inc. of Michigan. For Stelco, Appaloosa teamed up with Sunrise Partners LP of Toronto.

* Tricap Management Ltd. of Toronto -- A restructuring fund that belongs to Brookfield Asset Management Inc., formerly Brascan Corp., it targets companies in distress.

Known for buying into operations that have attractive assets and potential for turnaround, Tricap has been involved with Stelco since April, when it originally signed a letter of intent with the United Steelworkers.

Tricap has been a part of several complex restructurings under the Companies Creditors' Arrangements Act, including Quebec-based Concert Industries, Vicwest Corp. of Oakville and British Columbia-based Western Forest Products Inc.