Stelco Stalled on Restructuring Plan

Law360, New York (January 18, 2006, 12:00 AM EST) -- Bankrupt Stelco Inc.’s proposed restructuring plan has been put on hold until January 20 or later, after the judge overseeing the two-year-old proceedings asked that the company prove the feasibility of the plan.

Justice James Farley stalled his approval of Canada’s largest steel producer’s Chapter 11 filing in an attempt to encourage Stelco stakeholders to come to an agreement regarding the finalizing of two key loans, the corporate structure and the priority of the new financing, according to a monitor’s report.

A stakeholder endorsement of the...
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