U.S. Steel Canada has been granted creditor protection under Canada's Companies' Creditors Arrangement Act ("CCAA") by the Ontario Superior Court of Justice.
U.S. Steel Canada (formerly Stelco Inc.), was purchased by U.S. Steel in 2007. Stelco was founded in 1910 and continued for almost 100 years before it filed for bankruptcy protection in 2007 and was bought by US Steel.
Thereafter, the company recorded a string of losses, totalling in excess of C$2 billion dollars over five years.
Under the CCAA process, U.S. Steel Canada will carry on business as usual while it considers a range of restructuring and sale options. A Chief Restructuring Officer has been appointed. The company will operate under the supervision of a Monitor that will report to creditors and the Court.
U.S. Steel Canada has operations in Hamilton and Nanitcoke, Ontario. The Hamilton operations were shuttered in 2013.
The company has over 2,000 employees and faces a pension solvency deficiency estimated to be as high as C$1 billion.
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