Unsecured creditors and retired and active salaried workers at Stelco Inc. have approved a restructuring plan designed to take the former unit of United States Steel Corp. out of creditor protection.
More than 95 per cent of unsecured creditors voted in favour of the plan at meetings on Thursday, while 99.93 per cent of non-union workers who held pension and benefit claims in the proceeding also approved the plan.
"This is another step toward achieving the best – and only – outcome that will see Stelco emerge as a strong, independent Canadian steel producer," William Aziz, the steel maker's chief restructuring officer, said in a statement. Stelco will, however, be owned by Bedrock Industries Group LLC, a privately held, Miami-based metals and mining company.
The plan for Bedrock to take over what was Stelco, then United States Steel Canada Inc., and now Stelco again is still conditional on union members at two Stelco mills in Ontario approving new collective agreements with Bedrock.