A U.S. metals and mining company is offering to invest about $500-million to purchase U.S. Steel Canada Inc. and keep the troubled steel maker operating. Bedrock Industries LP has emerged from among several contenders as the Ontario government’s preferred candidate to complete the restructuring of U.S. Steel Canada, which is now into its third year.
Miami-based Bedrock is prepared to restructure the company with a cash infusion, a pension contribution and payments to the province of Ontario and U.S. Steel Canada’s former parent, United States Steel Corp., said sources familiar with a deal reached between the province and Bedrock.
The deal is supported by the national office of the United Steelworkers union (USW) and gained qualified support from other stakeholders that have participated in the company’s saga of protection under the Companies’ Creditors Arrangement Act.
U.S. Steel Canada’s chief restructuring officer William Aziz called it an important step forward. A final restructuring agreement is subject to full agreements from several stakeholders, notably the two locals of the USW that represent workers at mills in Hamilton and Nanticoke, Ont.
In addition, the Ontario government will seek what amounts to an exit agreement from Pittsburgh-based U.S. Steel that will help pay for some of the environmental liabilities left from more than a century of steel making in Hamilton and 30 years of production in Nanticoke, on the north shore of Lake Erie.
For the rest of this article, click here: http://www.theglobeandmail.com/report-on-business/ontario-picks-bedrock-to-stick-handle-us-steel-canada-revamp/article31982100/