Stelco not looking to sell assets, executives say

By Jeff Pines

Washington, May 7 - Stelco Inc. executives said the company is not shopping for a buyer, though marketing closed operations is another matter.

In a Friday earnings conference call, executives stressed that an agreement acceptable to all stakeholders must be reached for the company to emerge from bankruptcy protection.

The Hamilton, Ont.-based company was served with a notice to bargain as well as to meet to exchange proposals by the Lake Erie plant local of its union.

"We have gone back and told them this is inappropriate given the situation we are in," said Courtney Pratt, Stelco's president and chief executive officer.

The company is working hard to initiate discussions with various union locals, he said.

The steelworker's union tried to have the company's bankruptcy status revoked and after failing filed a request to appeal, which was also rejected.

Pratt said management is anxious to move away from focusing on dealing with an individual local and focus on a company-wide solution. The labor agreement at its Lake Erie plant is scheduled to expire on July 31, but management is trying to extend until the end of the year.

The executives stressed that unlike American bankruptcy law there are no cramdowns allowed under Canadian law, so the company really does need its labor force's cooperation to emerge.

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