Stelco monitor recommends extending capital raising deadline to Feb. 14

By Jeff Pines

Washington, Jan. 12 - Stelco Inc.'s court-appointed monitor recommended extending the deadline for binding offers for raising capital for the bankrupt steel producer to Feb. 14 from Jan. 31, the company said.

Ernst & Young Inc., the monitor, noted the high level of interest in the offering plans and concern from some that the Jan. 31 deadline would not give them enough time to complete their due diligence, Stelco said.

Stelco has consulted with Deutsche Bank, the stalking horse bidder, over the extension and it has agreed to the extension, the company said.

In addition, two new bidders are interested in acquiring the company's Stelpipe unit. After evaluating their proposals, Ernst & Young said it would be in the best interest of the company to admit the two late bidders. The court's approval will be needed to add them to the bidders.

Stelco will seek the court's approval to extend the deadline and admit the two Stelpipe bidders at its Jan. 17 hearing.

The Hamilton, Ontario-based steel company filed for protection under the Companies' Creditors Arrangement Act on Jan. 29, 2004. Its case number is 04-54306.

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