Stelco provides restructuring update

More news on Stelco...it should be interesting to see what the creditors do with respect to shares and cash.

HAMILTON, ON, Jan. 9 /CNW/ - Stelco Inc. (TSX:STE) today issued an updateon various measures being pursued under its Court-supervised restructuring process. The update is designed to, among other things, provide information that will assist affected creditors in electing whether to receive all or anypart of their distribution from the cash pool in new common shares of Stelco, rather than cash, as part of the recovery provided under the restructuring plan approved by affected creditors on December 9, 2005. The Company indicated that election forms were delivered to all in recent weeks. Under the restructuring plan, each affectedcreditor may elect, no later than 5:00 p.m. (Eastern time) on January 16,2006, to receive all or any part of its distribution from the cash pool in new common shares, subject to an overall limit on the number of new common shares that creditors collectively can elect to receive. Any affected creditor whodoes not so elect will receive its entire distribution from the cash pool in cash. Stelco also confirmed that the Court will consider the restructuring plan approved on December 9, 2005 at a sanction hearing on January 17, 2006. At that time the Court will also hear an application by certain existing shareholders seeking the sale of the entire Stelco enterprise as a going concern. Stelco does not believe that such a course would be in the best interests of the Company and its stakeholders. The Company also reported that the process of identifying a new board ofdirectors is continuing. The Company's agreement with the three significant equity holders provides that the new board will consist of: four directors to be named by Tricap Management Limited, one director to be named by each of Sunrise Partners Limited Partnership and Appaloosa Management LP, and the remaining three directors to be satisfactory to the three significant equity holders as a group. It is expected that the composition of the new board will be announced shortly before the date of the sanction hearing. Stelco also announced that the three significant equity holders, whotogether will hold a majority of shares in the Company upon completion of the restructuring, have indicated their desire that Courtney Pratt, the currentchief executive officer of the Company, be named chairman of the new board of directors, and that the Company seek a new chief executive officer. Any such changes are dependent upon plan implementation, scheduled for the end of February 2006.