The Stel Salaried Pensioners Organization wishes to
thank The Hamilton Spectator for permission to post the following article by
Reporter Steve Arnold published in the March 3, 2006 edition
By Steve Arnold
The Hamilton Spectator
Toronto (Mar 3, 2006)
Stelco is set to end its long journey through bankruptcy
protection at the close of this month.
In a brief hearing yesterday, Superior Court Justice James
Farley extended the company's creditor protection to March 31 to give the
lawyers and accountants working on its restructuring plan time to finish their
work.
Stelco lawyer Michael Barrack said a "substantial
amount or legal and accounting work needs to be performed" to ready the
new structure and while "there are no outstanding issues outside the
normal course for a transaction of this complexity," time is needed to get
everything done. He was supported by Robert Thornton, lawyer for the
court-appointed monitor, who said "all parties have indicated their willingness
to meet this schedule."
Lawyers told Farley the documents creating the new Stelco --
a structure of nine separate companies -- are expected to be completed by St.
Patrick's Day when they will report their progress to him and ask if it is
satisfactory.
"That progress will be satisfactory if nothing remains
but for the green-eye shade boys manipulating figures around," Farley
quipped. "People have warned that the glaciers are melting, but we know
glaciers are alive and well at Stelco."
Farley has said he intends to retire as soon as Stelco's
contentious restructuring is over and has urged lawyers repeatedly to get on
with the job.
"I can't imagine how it could take so long for people
to inspect their navels for nits," he said. "And I would remind you
that St. Paddy's Day is a mere 15 days away. That's St. Paddy's Day this year.
It would be a pretty good idea for everybody to ramp up a little bit now."
Stelco president Courtney Pratt said the major restructuring
issues have been settled. What's slowing the works now are technical questions.
"It's a very complex transaction. There are a whole lot
of loan agreements, credit agreements, pension agreements," he said after
the hearing.
"Those are all in the process of being drafted and the
drafting process is pretty complex. The originator drafts them and they go back
and forth and back and forth and they have discussions and trade drafts. I
think the message you should take away today is this process is going well. The
big issues have been settled, but there's still a lot of work to be done.
"The other message you should take is there is demonstrated commitment
from all the parties to get this done in this time frame," he added.
"Everyone recognizes it's critical for the company to get this done by
March 31. I think those two things are the key."
Farley also issued an order yesterday allowing Stelco to
sell a 65.6-acre parcel of land in Welland to a company called Universal
Capital Corporation. The price of the sale is sealed until the deal is closed.
The land was the site of Stelco's Welland Pipe subsidiary that closed in March
2003.
Stelco filed for creditor protection Jan. 29, 2004, citing
mounting losses and the crippling cost of covering its $1.3-billion pension
deficit. The restructuring agreements provide it with new operating lines of
credit, a plan to settle the pension deficit over 10 years starting with a $400
million downpayment and money for needed capital upgrades.
No concessions are demanded from workers or retirees, but
current shareholders are wiped out.
sarnold@thespec.com
905-526-3496