Steel Mills
Bedrock Industries Picked as Suitor for US Steel Canada
Written by Sandy Williams
September 22, 2016
US Steel Canada has moved closer to a resolution of creditor protection proceedings and a sale of the company. The government of Ontario and Bedrock Industries announced they have signed a Memorandum of Understanding to facilitate the restructuring of US Steel Canada.
The MOU terms are confidential but Ontario says it has agreed to support an acquisition by Bedrock that will protect pensions and post-employment benefits and keep Hamilton and Lake Erie works operating.
Charles Sousa, Minister of Finance released the following statement:
“We have been working with the company and other affected parties through the CCAA process to support the best possible outcome for employees, pension members and other stakeholders under these challenging circumstances. This MOU helps us to move forward on the Province’s priorities such as preserving jobs, protecting pensions and the environment while developing the industrial lands. We are hopeful that this will clear the way for a restructuring process that results in a viable, healthy company that supports continued operations in Ontario and in local economies.”
Bedrock Industries is a private held holding company focused on owning and operating metals and mining investments. Before a sale can be completed, Bedrock must negotiate a new collective bargaining agreement with the United Steelworkers and as well as gaom approval by the government, stakeholders, and the court supervising the CCAA proceedings.
“The MOU is an important milestone in our efforts to restructure the former Stelco operations of USSC,” said David Cheney, Bedrock Industries. “We look forward to continuing to pursue the completion of these efforts with all relevant stakeholders.”
“U.S. Steel Canada’s focus continues to be on the best interests of its stakeholders, including its customers, active employees and retirees, and seeing its court-supervised restructuring process through to the best possible conclusion,” said William Aziz, Chief Restructuring Officer, U. S. Steel Canada. “We welcome this constructive engagement from the parties that have negotiated this MOU. We consider it another important step toward facilitating a going concern transaction that will allow U. S. Steel Canada to complete the restructuring process and continue manufacturing and delivering high-quality steel products over the long term. This outcome would be in the best interests of stakeholders.”
United Steelworkers Ontario Director Marty Warren said the union is “encouraged by many aspects of the agreement.”
“We have been in discussions for quite some time with the province and various potential buyers about a restructuring of U.S. Steel Canada that would be good for our members and our retirees,” Warren said.
“The deal announced today is far from perfect, given the challenges that arise from such a lengthy and complex insolvency process,” he said. “However, after two years in CCAA protection and after numerous discussions with other bidders, we believe this could lead to a good final deal for the union’s members and retirees.”
Sandy Williams
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