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USW: U.S. Steel claims given priority in U.S. Steel Canada proceedings
By Caroline Salls
Pittsburgh, March 1 – U.S. Steel Canada Inc. former parent U.S. Steel’s more than $2 billion in claims were given creditor priority in U.S. Steel Canada’s insolvency proceedings, according to a release from the United Steelworkers (USW).
USW said Superior Court justice Herman Wilton-Siegel released a decision endorsing U.S. Steel's claims that it is owed more than $2 billion in debt from its former Canadian operations in Hamilton and Nanticoke and rejected arguments from the steelworkers, the Ontario government and other stakeholders that the money in question is equity, not debt.
The opponents argued that U.S. Steel “should not be allowed to go to the front of the line over other creditors, particularly thousands of pensioners and workers,” the release said.
“The union is reviewing this decision and discussing its options with counsel,” USW Ontario director Marty Warren said in the release.
“If U.S. Steel was technically insolvent before it tried to convert its equity or unsecured debt into secured debt, then it should not be allowed to do it.
“There is a second part to the trial that has not even started, and then there is no question of an appeal.”
USW Local 8782 president Bill Ferguson said in the release that “U.S. Steel controlled everything, took our work to the U.S., shut us down and tried to run us into the ground. And now they even get back the money they paid to buy us in the first place – it's a disgrace.”
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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