The U.S. Steel Hamilton Works plant is now under creditor protection, as seen in Hamilton on Sept. 17, 2014.J.P. Moczulski/The Globe and Mail
The Ontario Superior Court has adjourned a hearing on U.S. Steel Canada Inc. under the Companies' Creditors Arrangement Act.
The hearing has been postponed until Tuesday so lawyers can try to negotiate a deal on debtor-in-possession financing.
The key issue is the plan by the steel maker's parent, United States Steel Corp., to provide $185-million in debtor-in-possession financing for the Canadian unit.
That plan is opposed by the Ontario government and the United Steelworkers union, which argue that it gives U.S. Steel too much control over the restructuring of U.S. Steel Canada.
The company has a $150-million loan that is repayable to the Ontario government at the end of next year. The government faces a hit of as much as $400-million to its Pension Benefit Guarantee Fund if U.S. Steel Canada's pension funds are wound up.
The funds had a solvency deficiency of $838-million at the end of 2013.