June 9, 2017 12:41 pm

Judge greenlights Stelco’s sale to Bedrock

Some final details must be ironed out in the coming weeks, but a judge has cleared the way for Bedrock Industries to take ownership of Stelco.

Ken Mann

Justice Herman Wilton-Siegel says “we’re turning a page and commencing a new and more promising chapter in the history of Stelco.”

The bankruptcy court judge has approved the steel company’s sale to Bedrock’ Industries in a Toronto courtroom.

READ MORE: Stelco workers vote ‘yes’ on agreement that clears way for sale to Bedrock

Bill Ferguson, President of Steelworker’s Local 8782, is hopeful for the future.

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He describes the agreement as a “milestone,” noting that “the next few weeks are going to be really busy” ironing out details.

Ferguson adds that it’s a “compromise” in which all parties “gave in some sense.”

READ MORE: Stelco retirees assured their pensions will not be reduced

Bill Aziz, Stelco chief restructuring officer, said it’s the first time he’s ever seen contaminated land sold to fund pensions.

He calls it an “innovative way to deal with the land” and a way to “provide additional funding for pensions” in order to create value for retirees.

The sale can be finalized once some details around land transfers and pensions are worked out before a deadline of June 30th.

U.S. Steel Canada’s supervised restructuring under the Companies’ Creditors Arrangement Act has been before the courts since the fall of 2014.

© 2017 Global News, a division of Corus Entertainment Inc.

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