U.S. Steel Canada $185 million DIP loan allowed, CCAA stay extended

By Kali Hays

New York, Oct. 8 – U.S. Steel Canada Inc. obtained a stay of proceedings under the Companies’ Creditors Arrangement Act through Jan. 23 and access to $185 million of debtor-in-possession financing from the Ontario Superior Court of Justice, according to a Wednesday news release.

U.S. Steel Holdings Inc. is providing the DIP financing to fund the company’s continued operations during the restructuring through December 2015.

William Aziz, U.S. Steel Canada’s chief restructuring officer said that the stay period will allow the company to “engage in discussions with stakeholders to explore restructuring options and reach consensual solutions where possible,” according to the release.

As previously reported, parent company United States Steel Corp. announced that its Canadian subsidiary would file for protection under the CCAA after a unanimous decision by the company’s board of directors.

Hamilton, Ont.-based U.S. Steel Canada’s operations are located at Lake Erie Works, a fully integrated steelmaking facility, and at Hamilton Works, a cokemaking and finishing facility.

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