The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article,

published in the March 17, 2006 edition

 

Distribution of Stelco assets approved by Farley

The Canadian Press
Toronto (Mar 17, 2006)

The judge overseeing Stelco's bankruptcy protection ruled assets being held in trust may be handed over to the Hamilton steelmaker.

"I am satisfied that the distribution agreements are fair and reasonable in the circumstances," said Ontario Superior Court Justice James Farley.

The court-appointed monitor in the case, Alex Morrison of Ernst & Young, has been holding $124.8 million in trust from the sale of Stelco's subsidiaries to Mittal Steel and others.

During Stelco's two years in bankruptcy protection, it has sold off all of its non-core businesses, including the sale of three of its divisions -- Stelwire Ltd., Stelfil Ltee. and Norambar Inc. -- to Mittal Steel for $30 million.

Stelco's creditor protection expires March 31, although Farley has said the biggest part of its final restructuring work should be done before today.

In court yesterday, he noted that was one day away.

"I was told that negotiations went until 11 o'clock (Wednesday) night, with representatives of the bondholders in town," said Stelco lawyer Michael Barrack-- who promised two weeks ago that Stelco would have a "pre-closing" date on March 17, meaning that all the major restructuring documents were to be signed by that date.