The Stel Salaried Pensioners Organization wishes to
thank The Hamilton Spectator for permission to post the following article by
Reporter Tara Perkins,
published in
the March 27, 2006 edition
TORONTO (CP) - Stelco Inc. (TSX:STE.A) said Monday it has
wrapped up all the agreements that go along with its restructuring plan,
including multiple loan documents and a pension deal with the Ontario
government.
The Hamilton-based steelmaker, which has been struggling to
restructure since entering bankruptcy protection in January 2004, had promised
a judge it would have those agreements completed by March 17 in preparation for
exiting court protection at the end of this month.
On Monday, the steelmaker confirmed that it is still on
track to finish its bankruptcy protection on March 31, at which point a new
board and CEO will take over.
One of the final documents specified the terms of new
secured floating-rate notes - part of the refinancing that Stelco arranged
while in bankruptcy protection.
The company's bondholders have approved the terms, Stelco
said Monday. The notes' terms were recently changed to increase by 0.5 per cent
the interest rate payable in the first two years.
When Stelco exits bankruptcy protection on March 31, CEO
Courtney Pratt will become chairman of the new board. Pratt will be replaced as
CEO by Rodney Mott, who was CEO of Ohio-based International Steel Group Inc.
before it was sold to Mittal Steel last April in a $4.5-billion-US deal.
One of his first tasks will be negotiating a new collective
agreement for unionized workers in Hamilton. The current contract expires this
summer.
The company's old stock, which was essentially wiped out
under its restructuring plan, has been delisted.
On April 3, new shares will begin trading on the Toronto
Stock Exchange.
Tricap Management Ltd., a restructuring fund that is lending
Stelco $375 million, will own about one-third of the stock. Tricap is run by
Toronto-based Brookfield Asset Management.
Two other firms that are financing Stelco, Sunrise Partners
LP and Appaloosa Management LP, will split an ownership stake of at least 34.9
per cent.