KEY MILESTONES
October 2014 — U.S. Steel Canada is granted a request for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), 10 years after the steelmaker was granted a similar request in 2004 that stayed in force for two years.
October 2015 — Facing threats that USSC would cease Canadian operations, the judge in Toronto overseeing the restructuring hearings agrees to a package of controversial measures that allow the company to stop paying health benefits to retirees along with municipal taxes and other business costs.
February 2016 — The judge agrees that parent company U.S. Steel has $2.2 billion in debts from the former U.S. Steel Canada, with $1.9 billion of it being unsecured debt.
Through 2015-16 — A series of potential suitors consider making bids, including venture capital firm Bedrock Industries, a company apparently formed in February 2016 in Miami, Fla. The company is a group of investors led by chair Alan Kestenbaum who — according to a company website — has 25 years of experience in the “metals and mining production, trading, distribution and finance business.”
September 2016 — The provincial government announces it has reached a framework agreement with Bedrock that would eliminate historical environmental liability and mitigate pension obligations.
Dec. 1, 2016 — U.S. Steel Canada hoists flags at its Hamilton and Lake Erie plants to signal the company’s return to using its previous name: Stelco. Officials say USSC will continue as a legal name for months.
Jan. 30, 2017 — Stelco cuts 29 salaried workers from its payroll. The company says it has different staffing needs as it makes the transition away from parent company U.S. Steel.
April 27, 2017 — General unsecured creditors – of which U.S. Steel is the largest – as well as salaried workers and pensioners, vote to support the plan that basically pays 10 cents on the dollar to creditors and 70 per cent of health care benefits to pensioners.
May 9, 2017 — The court had scheduled May 9 for a “sanction hearing.” But lawyers will ask to have the hearing date changed to June 9. June 9, 2017 — “Sanction hearing” expected to take place in which the judge will be asked to accept or reject the restructuring plan before him.