Stelco adjourns creditors' plan vote to continue stakeholder negotiations

By Caroline Salls

Pittsburgh, Nov. 16 - Stelco Inc. adjourned the meeting of its creditors to vote on its restructuring plan to Nov. 21 in light of ongoing negotiations among stakeholder groups, according to a company news release.

The creditors' meetings of Stelco subsidiaries were also adjourned to Nov. 21.

"While we remain hopeful that a consensual plan can be achieved, it's clear we can't get there today [Nov. 15]," Stelco president and chief executive officer Courtney Pratt said in the release, issued Tuesday.

"The plan as currently filed is not acceptable to the majority of affected creditors. In that context, there seems little point in submitting the plan to a vote at this time.

"An adjournment will provide time for negotiations among the parties to continue toward final resolution in a focused and timely manner. Our goal, as it has been throughout this process, is to secure a consensual restructuring.

"We want to address the concerns of bondholders while maintaining the support of those groups that have already endorsed the current plan. We believe this approach is the best way in which to achieve the most positive outcome for our stakeholders," Pratt said in the release.

Stelco, a Hamilton, Ont.-based steel company, filed for bankruptcy under the Companies Creditors' Arrangement Act on Jan. 29, 2004.

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