Stelco restructuring stay extended to Sept. 9

By Caroline Salls

Pittsburgh, July 19 - Stelco Inc. obtained an extension to the stay period under its court-supervised restructuring from the Ontario Superior Court of Justice, according to a company news release.

The stay period was extended to Sept. 9 from July 18.

The court also adjourned a United Steelworkers motion to remove Stelco's exclusivity to develop and file a restructuring plan until Aug. 16.

"The stay extension provides the time in which to discuss with all stakeholders the plan outline we filed [Friday]," president and chief executive officer Courtney Pratt said in the release.

"As we said then, we knew that stakeholder groups would express concern about the plan outline because it did not give them everything they asked for. As we also stated, our goal was to find a middle ground that everyone could support. There is not enough value in the company to give every group everything it wants.

"As well, the company is the only stakeholder with the legal obligation to take into account and address the interests and competing demands of other stakeholders."

Pratt said the company believes its funding plan, like the rest of the plan outline, is achievable, financially responsible and compatible to Stelco's long-term viability.

"It's time for stakeholders to consider the plan outline from everybody's perspective, not just their own," Pratt added in the release.

"As the judge said today, people need to deal with reality, not with wishes. And the reality is that, one way or another, Stelco must emerge from [Companies Creditors' Arrangement Act bankruptcy] sooner rather than later."

The Hamilton, Ont., steelmaker filed for bankruptcy on Jan. 29, 2004.

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