Stelco creditors vote in favour of deal

Another major milestone for Stelco.

U.S. Steel Canada creditors have overwhelmingly approved Stelco’s plan to emerge from creditor protection and be taken over by Bedrock Industries.

Nearly 96 per cent of general unsecured creditors voted in favour of the plan, while 99.9 per cent of non-United Steel Workers employee main pension and OPEB (Other Post-Employment Benefits) claim holders voted in favour.

“This marks another milestone and I thank creditors for overwhelmingly supporting Stelco’s Plan of Arrangement, Compromise and Reorganization,” said William Aziz, Chief Restructuring Officer, USSC.  “This is another step towards achieving the best – and only – outcome that will see Stelco emerge as a strong, independent Canadian steel producer.”

Bedrock already has agreements in principle with the provincial government, U.S. Steel and Stelco’s salaried employees and retirees.

The plan, however, is conditional on new collective agreements with United Steelworkers Locals in Hamilton and Nanticoke.

Gary Howe, United Steelworkers Local 1005 president, has said union negotiators met with Bedrock management earlier this month and gave a list of proposals that include job security and reinstatement of health care benefits.

He says the company has not yet said when it will respond.

The steelmaker has been operating under creditor protection since September 2014.