Stelco Inc. Emerges From CCAA Proceedings
|Areas||Commercial Real Estate, Corporate and Commercial, Corporate Restructuring, Litigation, Municipal, Planning and Property Tax , Pensions, Tax|
Goodmans represented the Superintendent of Financial Services as Administrator of the Pension Benefits Guarantee Fund, and the Province of Ontario as restructuring and corporate counsel in connection with Stelco Inc.'s, formerly U.S. Steel Canada Inc., emergence from CCAA proceedings through the implementation of a CCAA plan on June 30, 2017. This involved the compromise of more than $2 billion of debt and the restructuring of approximately $2 billion of pension and benefit obligations. The CCAA plan also included new regulations by the Ontario government, new financing, new collective agreements with its three union locals, the creation of a “Landco” that will monetize significant land holdings around Hamilton harbour and elsewhere for the benefit of retirees, important arrangements with the Ministry of the Environment to address environmental matters, and the acquisition of Stelco from United States Steel Corporation (USS) by its new owner, Bedrock Industries, LP.
Stelco is a steel company based in Hamilton, Ont., and is a significant economic player for the City of Hamilton and the Canadian steel industry.