|Date Closed:||June 30, 2017|
|Client Name:||Ernst & Young|
On June 30, 2017, Stelco Inc. (Stelco), formerly U.S. Steel Canada Inc., emerged from Companies’ Creditors Arrangements Act (CCAA) proceedings through the implementation of a CCAA plan. 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 (Bedrock).< /p>
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.