US Steel Trying to "Earn the Right to Grow"

The USW and Ontario officials are determined to not go down easily in the fight to keep US Steel Canada alive. The $185 million that US Steel is loaning to US Canada in DIP financing is under hot dispute by union members and the province. The DIP (debtor-in possession) filing has been called “a thinly veiled loan-to-own strategy” that will give US Steel first rights as bidder for Lake Erie Works.

Ontario countered with its own filing that notes that US Steel told US Steel Canada that it was not permitted to borrow from any other lender that would rank ahead of US Steel in debt repayment. The Ontario filing states that US Steel Canada “should be able to consider and advance all restructuring alternatives for the benefit of its stakeholders without its controlling parent and sole shareholder restricting those alternatives at the outset of the CCAA proceedings.”