U.S. Steel Canada Inc., known as Stelco, has asked a New York judge to formally recognize its Canadian restructuring efforts, a condition of the company’s plan to finalize a bankruptcy takeover by Bedrock Industries L.P. by the end of June, the Wall Street Journal reported on Saturday. Stelco sought chapter 15 protection on Friday in U.S. Bankruptcy Court in New York. Court approval of the restructuring plan in both Canada and the U.S. will help the steel producer avoid potential disruptions from creditors after it emerges from bankruptcy. Lawyers for Stelco said in court papers that U.S. creditors have had ample time to make claims in the Canadian proceeding. Stelco’s parent is U.S. Steel Corp., one of the largest steel producers in North America, which acquired the company in 2007 just before the financial crisis dealt a blow to the steel market. With more than C$2 billion (US$1.48 billion) in debt it couldn’t afford to repay, Stelco kicked off the equivalent of chapter 11 bankruptcy in Canada in 2014 after “several years of significant operational and economic challenges,” court papers filed on Friday said. Read more. (Subscription required.)
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