[projekktor id=’28317′]
An Ontario judge has approved the sale of Stelco to U.S. firm Bedrock Industries.
Justice Herman Wilton-Siegel said at a hearing in Toronto that he “recognized cooperation and good faith exhibited by all parties.” He added, “Nobody ever gets all they want. This plan holds considerable benefit.”
The approval of the plan comes just three days after members of United Steelworkers Local 1005, employed at Stelco’s operations in Hamilton, voted to ratify a collective agreement with Bedrock Industries. Members of USW Local 8782, employed at Stelco’s operations in Nanticoke, ratified a collective agreement last Friday.
“We have diligently pursued the best possible outcome for almost three years and I sincerely appreciate the constructive engagement from many stakeholders,” said Bill Aziz, Stelco’s Chief Restructuring Officer in a press release. “In particular, I would like to recognize the sustained and focused efforts of Stelco’s leadership team and employees across the organization. Despite the uncertainty, the Company’s dedicated people kept moving the business forward to the point that it is now poised to emerge as a strong, independent Canadian steel producer.”
Stelco has been operating under the Companies’ Creditors Arrangement Act protection since September 2014. Ernst & Young Inc., as the court-appointed monitor, will continue to oversee the business and financial affairs of the company during the CCAA process.
“Today marks the turning of the page on a new chapter for Stelco,” said Michael A. McQuade, President and General Manager of Stelco in a media release. “I would like to thank all of our employees for their resilience throughout this process and for their effort in creating the value in our business that was such a critical factor in achieving this successful outcome.”
United Steel Workers Local 8782 President Bill Ferguson called the day a milestone. “Now it’s going to be race to finish up the rest of the paperwork and there’s a lot. There’s a lot that has to be done. The next few weeks are going to be very busy,” says Ferguson.
U.S. Steel has set a deadline of 5 p.m. on June 30 for the sale to go through. In the next 21 days, if anyone is opposed to the sale they must make an appeal to the courts.
