Steel Mills
September 17, 2014
U.S. Steel Canada Seeks Creditor Protection Under CCAA
Written by John Packard
The steel market is scrambling to gather information as U.S. Steel Canada today announced they are initiating a court supervised restructuring of the Hamilton and Lake Erie steel mills (USS Canada) so that they can “compete in the North American steel market for the long term.” Metals and mining analysts told SMU this evening that Wall Street was considering this move as a positive. However, the Canadian government and the unions representing the Hamilton Works and Lake Erie Works workers may have differing opinions. At least one analyst suggested to SMU this evening that this could be a negotiation ploy. We were advised that the CCAA provision in Canada was completely discretionary. We have attached a link to Wikipedia for their take on the CCAA provisions.
Steel Market Update received the following press release from USS Canada earlier this evening:
