Steel Mills
July 25, 2015
US Steel Canada Running Out of Money
Written by Sandy Williams
US Steel Canada has a new financial backer to help it through its credit protection period. A court hearing on Friday removed parent company US Steel as provider of debtor in possession (DIP) financing and installed Brookfield Capital Partners as the new lender.
The new lending package gives USSC access to $150 million to keep operations underway until the company can be restructured or sold. Although the interest rate and fees are higher (11 percent and 3 percent, respectively) the change in lender alleviates concerns by union leaders and the provincial government about US Steel having too much control over the sales process. Brookfield confirmed it will not participate in the sales or restructuring process, wrote court monitor Alex Morrison in his recommendation to accept the replacement DIP.
