U.S. Steel Canada begins sale, restructuring/recapitalization process

By Caroline Salls

Pittsburgh, April 10 – U.S. Steel Canada Inc. is launching a sale and restructuring/recapitalization process (SARP) as part of its Companies’ Creditors Arrangement Act proceedings, according to a news release.

U.S. Steel Canada said the SARP is intended to solicit interest in opportunities for a sale, restructuring or recapitalization of its assets and business operations. The opportunities may include one or more of a restructuring, recapitalization or other form of reorganization of the business and affairs of the company as a going concern, or a sale of all, substantially all, or one or more components of its assets and business operations.

The assets and operations that could be sold include U.S. Steel Canada’s real property in Hamilton, Ont., coke ovens, assets used for ironmaking, steelmaking and finishing, and other operating assets and business operations located in Hamilton, and the company’s real property in Nanticoke, Ont., as well as coke ovens and assets used at that location.

According to the release, the SARP will consist of two phases. In phase one, parties who entered into a non-disclosure agreement will be provided with information considered relevant to the opportunity and will have a chance to submit a non-binding letter of interest by May 20 offering to acquire all, substantially all or a portion of the property or make an investment in, restructure, reorganize or refinance the business.

Parties that submit a qualified letter of intent, have a bona fide interest in completing a sale proposal or investment proposal and have the financial capability to complete a transaction may be invited to participate in phase two, which will include detailed due diligence and access to a confidential data room.

The SARP will be subject to the supervision of the court-appointed monitor for the company’s CCAA case.

The Ontario Superior Court of Justice entered an order setting guidelines for the process on April 2.

Hamilton, Ont.-based U.S. Steel Canada’s operations are located at Lake Erie Works, a fully integrated steelmaking facility, and at Hamilton Works, a cokemaking and finishing facility.

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