Stelco corporate structure reorganization approved

By Caroline Salls

Pittsburgh, Feb. 14 - Stelco Inc.'s corporate structure reorganization was approved Tuesday by the Ontario Superior Court of Justice, according to a company news release.

As a result, portions of Stelco's business will be transferred into separate limited partnerships upon the company's emergence from its court-supervised restructuring process.

As previously reported, among the features of Stelco's reorganization are provisions concerning the pension plan funding arrangement contained in Stelco's restructuring plan, including a 10-year funding arrangement; the responsibilities of Stelco and the general partners in the limited partnerships and the ongoing pension funding obligations of Stelco and of any buyer of the company.

Stelco will also be prohibited from making dividend payments or other forms of distribution on its common shares while the pension funding arrangements are in effect.

Stelco, a Hamilton, Ont.-based steel company, filed for bankruptcy under the Companies Creditors' Arrangement Act on Jan. 29, 2004 in the Ontario Superior Court for Justice.

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