U.S. Steel Canada Gets Extension on Bankruptcy Protection

by San Antonio Attorney

A Toronto judge allowed more time on the court-supervised reorganization process that United States Steel Canada is dealing with for the past two years.

Many steelworkers and pensioners from both Lake Erie and Hamilton came to Toronto for the court hearing.  Also, a lawyer for Local 1005 harked back the court about the main priorities of the union as a possible sale is negotiated: Jobs, benefits and pensions.

Justice Herman Wilton-Siegel allowed more time until March 31, 2017 under the Companies’ Creditors Arrangement Act.

That extension is amid the parties’ negotiation privately to come up with an agreement with a potential purchaser, Bedrock Industries.

Bedrock Industries, a private equity investment firm, publicized a formal agreement with the province last September, and the company’s previous parent company entered earlier this month.

The union local that represents steelworkers at the U.S. Steel Canada in Lake Erie plant entered a “letter of support” a week ago in favor of the Bedrock Industries offer to purchase the business, but the Hamilton local 1005 is still feeling cautions about possible issues.

Local 1005 consist of 540 active member and 9,000 retirees.

Bankruptcy protection is the standing granted to a company or individual who is unable to repay all their debts.  Bankruptcy protection can be instigated by either the debtor or the court.

Deciding to declare bankruptcy can be an agonizing decision, but in some cases it is the only option available.  Whether you have a complicated case or a lot of questions, a San Antonio Bankruptcy attorney will guide you through the process with no or very little stress.

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