Stelco mediation process underway, new agreement reached on plate mill asset sale

By Caroline Salls

Pittsburgh, May 26 - Stelco Inc. said the mediation process to build a consensus for its restructuring plan initiated on May 19 is underway, according to a monitor's report filed Thursday with the Ontario Superior Court of Justice.

According to the report, mediator George Adams began holding one-on-one meetings with stakeholders on May 24.

Also, Adams' decided Wednesday not to force one local union in the Stelco chain to participate in the mediation process.

The report also said work has continued on a new purchase and sale agreement for the plate mill assets of the company's Plateco subsidiary.

On the Plateco sale, the monitor said previous buyer Casey Equipment Co., LLC did not close the transaction on April 15, but Casey and Stelco have entered into a new purchase and sale agreement for the plate mill assets.

The Hamilton, Ont., steelmaker filed for bankruptcy on Jan. 29, 2004 under the Companies' Creditors Arrangement Act.

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