Stelco restructuring stay extended to Sept. 23; special officer appointed to oversee complaints review

By Caroline Salls

Pittsburgh, Sept. 7 - Stelco Inc. obtained an extension to the stay period for its court-supervised restructuring and appointed a special officer to oversee a review of complaints made by two former directors, according to a company news release.

The stay period was extended to Sept. 23 from Sept. 9.

Stelco's court-appointed monitor in its Companies Creditors' Arrangement Act bankruptcy recommended the extension be granted to allow Stelco's meaningful discussions with some of its major stakeholders to continue.

Also, Coulter Osborne was appointed as the special officer for the court in Stelco's case.

Osborne will oversee and assist the special committee of Stelco's board of directors that has been appointed to review complaints made by two directors who resigned on Aug. 31.

According to the release, the complaints reflect concerns about effective board oversight of recently prepared forecasts that will be important to the restructuring plan to be filed by the company.

Osborne was appointed to the High Court of Ontario in 1978 and to the Court of Appeal for Ontario in 1990. He served as associate chief justice of Ontario between 1999 and 2001. In 2001 he was appointed the integrity commissioner for Ontario.

Stelco, a Hamilton, Ont.-based steel company, filed for bankruptcy in the Ontario Superior Court of Justice on Jan. 29, 2004. Its case number is 04-54306.

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