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Ivaco obtains extension of CCAA stay until Nov. 24
Chicago, Oct. 15 - Ivaco Inc. said that the Ontario Superior Court has granted an extension until Nov. 24 of it stay of proceedings under the Companies' Creditors Arrangement Act. The initial order was issued on Sept. 16 for a 30-day period.
The company is in the process of preparing a plan of restructuring under the CCAA for the purpose of returning its core businesses to profitability.
Ivaco also said it has signed an agreement to sell a property in Virginia for $4 million. The transaction is expected to close no later than Jan. 9, 2004.
The company also said it is continuing its search for a chief restructuring officer.
The Canadian steel company filed for protection under CCAA on Sept. 16, and said it obtained up to $50 million of debtor-in-possession financing from GE Canada Finance Inc.
The Ivaco entities that received CCAA protection have also applied to the court in the Eastern District of Michigan for similar protection of their U.S. assets. The company's U.S. manufacturing operations are being discontinued.
Ernst & Young has been appointed by the Ontario Court as monitor in the CCAA proceedings. The company has retained UBS Securities LLC as its financial advisor in connection with the restructuring.
The restructuring plan consists of the consolidation of the Canadian operations in order to create a more efficient corporate structure; continuing the program for the sale of non-core assets; the renegotiation of various operating and labor agreements; the settlement of debts, including trade liabilities and legal obligations; continuing sales and distribution operations in the United States; and the discontinuance and sale or liquidation of all of the Company's United States manufacturing operations.
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