Stelco provides update on restructuring: “The Applicants intend to bring a motion seeking a representation order for retired salaried beneficiaries of the Applicants. The Monitor is of the view that the requested representation order is reasonable and recommends that this order should be made.”
Stelco Inc. Investor Relations: “since filing for creditor protection, [Stelco] is experiencing few disruptions in operations in relation to customer orders and shipments. Customers have continued to support the Corporation as it initiates its restructuring efforts. […] suppliers have also shown significant support for its continuing business. “
Media Advisory – Stelco provides information update to employees: “We’ve stated that we need to review our entire cost structure during our restructuring process. We have not singled out and do not intend to single out any one particular group to bear the entire burden of this exercise, be it employees, bondholders, pensioners, trade creditors or others.”
Yahoo! News – Algoma Steel earns $10.1M profit in Q4 as lower costs offset drop in sales: “Algoma’s profit comes as other steelmakers are reeling from heavy debtloads and piling losses. Hamilton-based steel giant Stelco Inc. entered bankruptcy-court protection late last month, joining Slater Steel of Mississauga, Ont., and Montreal-based Ivaco Corp., who made such moves last year.
Algoma itself has endured two bankruptcy restructurings, emerging from its second one in early 2002. “
Yahoo! News – No guarantee of a provincial bailout for faltering steelmaker Stelco: “The Ontario government is closely monitoring the situation […] but Premier Dalton McGuinty is making no promises to bail out the Hamilton company.
The company blamed its financial troubles on its high cost structure, a deteriorating cash position and its inability to compete with other steel companies that have already restructured.
Stelco, whose 9,500 active workers are outnumbered by its 12,200 retirees, has said that so-called legacy costs, such as pensions, are a major factor in its inability to compete. “
Yahoo! News – U.S. vulture fund buys 20% stake in Stelco for $16M as Caisse de depot bails: “Amaranth bought 20 million Stelco shares at 80 cents each … Over the past 52 weeks, 20 million Stelco shares were worth as much as $93 million. “
Today’s news seems to be full of companies in trouble …
Automotive stamping companies …
Ajax Precision was already in protection but now I see reports of their equipment going up for auction .
A G Simpson has been operating under court protection since October 2001
VELTRI METAL PRODUCTS, INC. FILES FOR COURT PROTECTION
And steel companies aren’t doing well in the news either.
Analysts say Stelco may have to trim its workforce by as much as 1,500 workers to return to profitability. Stelco’s unfunded pension liability amounts to $1.3-billion.
Turnaround specialist Hap Stephen – who helped restructure Algoma Steel two years ago – was appointed as the company’s chief restructuring officer.
STEELWORKERS PREPARED TO WORK WITH STELCO STAKEHOLDERS ON THE “RIGHT KIND OF RESTRUCTURING”