Thursday, April 14, 2005
Stelco comments on USWA letter of intent with Tricap
HAMILTON, ON, Apr 13, 2005 Stelco Inc. today commented on the Letter of Intent signed by the USWA and Tricap Management Limited ("Tricap") and announced this afternoon. Stelco was not a party to the letter.
The Company noted that a Court-approved capital raising process, where third parties were invited to participate, was run earlier this year. Tricap was invited to and had an opportunity to participate in the process that took place between October 2004 and February 2005, but declined to so.
Stelco is now pursuing a Court-approved stand-alone process to raise capital that will allow it to emerge from CCAA protection. The Stelco-driven process will seek to address all stakeholders concerns, not just those of the USWA.
Hap Stephen, Stelco's Chief Restructuring Officer, said, "We all want to see Stelco emerge from its restructuring as successfully and as quickly as possible. That can only be done within an objective process that provides certainty, involves recognized stakeholders, and addresses their interests.
"A Court-approved capital raising process is already in place. All interested parties have had the opportunity to take any concerns about that process to the Court. The Company with the assistance of its advisors are implementing that process with the interests of all stakeholders in mind. We will discharge our responsibility, proceed with the Court-approved process and report to all stakeholders accordingly."
The Company noted that a Court-approved capital raising process, where third parties were invited to participate, was run earlier this year. Tricap was invited to and had an opportunity to participate in the process that took place between October 2004 and February 2005, but declined to so.
Stelco is now pursuing a Court-approved stand-alone process to raise capital that will allow it to emerge from CCAA protection. The Stelco-driven process will seek to address all stakeholders concerns, not just those of the USWA.
Hap Stephen, Stelco's Chief Restructuring Officer, said, "We all want to see Stelco emerge from its restructuring as successfully and as quickly as possible. That can only be done within an objective process that provides certainty, involves recognized stakeholders, and addresses their interests.
"A Court-approved capital raising process is already in place. All interested parties have had the opportunity to take any concerns about that process to the Court. The Company with the assistance of its advisors are implementing that process with the interests of all stakeholders in mind. We will discharge our responsibility, proceed with the Court-approved process and report to all stakeholders accordingly."
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