Stelco monitor supports restructuring plan; asks court to approve it at Jan. 17 hearing

By Caroline Salls

Pittsburgh, Dec. 22 - Stelco Inc.'s monitor for its court-supervised restructuring supported the restructuring plan approved by affected creditors on Dec. 9, saying the plan is fair and reasonable and recommending that the Ontario Superior Court of Justice approve the plan at a Jan. 17 hearing, according to a company news release.

The monitor said the plan represents a fair and reasonable compromise among stakeholder groups and is fair and reasonable in terms of its affect on the creditors.

The monitor further described the plan as "the embodiment of a point of consensus among key stakeholder groups."

Given the intensity of the negotiations, the monitor said it does not appear that an agreement would have been reached had it been necessary to provide material consideration to the existing shareholders.

Stelco, a Hamilton, Ont.-based steel company, filed for bankruptcy under the Companies Creditors' Arrangement Act on Jan. 29, 2004.

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