TORONTO -- An Ontario court delayed by one day yesterday a decision on whether to approve Stelco Inc.'s restructuring plan, after lawyers for the steel maker's shareholders said there may be a better option.
Under the current plan, which was overwhelmingly approved by creditors more than a month ago, Stelco's existing shareholders would get nothing because the company, Canada's biggest steel producer, does not have enough money to pay off creditors.
The lawyer for the shareholders asked the judge overseeing the restructuring of Hamilton-based Stelco to give the court-appointed monitor the power to seek out a buyer for Stelco. He pointed to the current bidding war for rival Dofasco Inc., also of Hamilton. full story.
I came across a very interesting arcticle by Bill Cara here, that questions the integrity of the Stelco affair and makes very interesting reading.