U.S. Steel Canada emerges from CCAA protection as Stelco, sale closes

By Caroline Salls

Pittsburgh, June 30 – United States Steel Corp. announced Friday that it has finalized an agreement with Bedrock Industries Group LLC for the sale and transition of ownership of U.S. Steel Canada, Inc. (USSC) to Bedrock, and the sale has closed.

According to a news release, U.S. Steel received roughly $127 million in satisfaction of its secured claims, including interest and unsecured claims, in connection with the closing.

The terms of USSC’s Companies’ Creditors Arrangement Act plan and the sale closing also included an agreement to provide mutual releases among key stakeholders, as well as a release of all claims against U.S. Steel regarding environmental, pension and other liabilities.

U.S. Steel said it will continue to provide transition services to USSC, and it entered an agreement to supply USSC with all of its requirements for iron ore pellets through Jan. 31, 2022.

USSC said in a separate release that it has formally changed its name to Stelco Inc. and has now emerged from CCAA protection.

“It is with great excitement and pride that I look forward to writing the next chapter in Stelco’s history,” Stelco president Michael McQuade said in the Stelco release.

U.S. Steel Canada filed for CCAA protection in September 2014. Its stay period was recently extended to March 31.

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