Touchstone Exploration Inc. press release
Stelco issues restructuring update
TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
HAMILTON, ON, Sept. 1 /CNW/ - Stelco Inc. (TSX:STE) this evening issued an information update in the matter of its Court-supervised restructuring. The Company indicated that it is continuing active discussions with stakeholders concerning its intention to introduce a plan of arrangement under the Companies' Creditors Arrangement Act that would enable Stelco to exit Court protection. Stelco noted that it is continuing to develop a detailed plan designed to help the Company emerge as a viable and competitive steel producer in the North American market environment. Courtney Pratt, Stelco President and Chief Executive Officer, said, "The restructuring terms we are working on are intended to address the interests of all stakeholders in this process in a fair and reasonable way. Our final plan must also take into account market conditions that are increasingly challenging for our business. These factors include steel demand and prices as well as the prices of raw materials, natural gas and electricity." The Company stated that, in light of recent active discussions with stakeholders, and at the suggestion of the Court-appointed Monitor and stakeholders, it will seek a brief extension to the stay period at a Court hearing scheduled next week. This will provide time for further stakeholder discussions prior to the filing of a formal restructuring plan. Stelco also announced that it will form a special committee to review complaints lodged with the Company by two directors who retired from the Board on August 31, 2005. The essence of the complaints made to the Board reflect concerns about effective board oversight of recently prepared forecasts that will be important in shaping the final plan introduced by the Company. Richard Drouin, Chairman of Stelco's Board of Directors, said, "We believe that the complaints we've received are without foundation. We will, however, review the complaints carefully, a process that will take some time. It's in the best interests of the Company, though, that the restructuring process move ahead as quickly as possible." The Company added that it intends to seek leave of the Court to appoint a Special Officer to oversee the review of the complaints and to report to the Court on the processes followed by the Board in its consideration of recently prepared forecasts. Mr. Drouin said, "The Board has met more than 40 times in 2005 to oversee the restructuring process and has been advised by separate Board counsel and two leading investment banks. It is important that the integrity of our processes and Board overview of the restructuring not be open to question."
About Stelco Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses. This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions. Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2004 Annual Report. To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca.
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