March 20, 2017
On March 15, 2017, the Superior Court of Justice (Commercial List) (the “CCAA Court“) approved the filing of a Plan of Compromise and Arrangement (the “Plan“) made under the CCAA between USSC and its creditors. The Plan sets out USSC’s proposal to deal with its debts and restructure its business and operations. Under the Plan, Bedrock will acquire substantially all of USSC’s operating assets and business on a going concern basis.
The filing of the Plan does not mean that the Plan has been approved. In order for the Plan to be brought into force, two major steps must still occur:
a) the Plan must be voted in favour by a majority of the creditors at a creditors meeting convened by the company and the monitor. The date of the creditors meeting has been set for April 27, 2017, and
b) if the Plan passes the vote, the Plan must be approved by the CCAA court as being fair and reasonable in the circumstances. The date of the approval hearing (also known as the “sanction” hearing) is May 9, 2017 at 10 am at the Superior Court of Justice (Commercial List) in Toronto.
Negotiations continue to take place between all stakeholders, and the Plan is subject to change. We will continue to update you as information becomes available.
Meetings of the affected creditors of USSC (the “Creditors’ Meetings“) to vote on the Plan are scheduled to be held on April 27, 2017.
To view a copy of other material relating to the Plan and the Creditors’ Meetings please visit the Monitor’s website by clicking here. [Link no longer available]
On March 15, 2017, the CCAA Court also approved the Supplementary Claims Process Order with written reasons to follow. To view a copy of the Order please click here.
The Supplementary Claims Process is a process through which to identify and resolve the claims of all non-USW employees and retirees of USSC in advance of the Creditors’ Meeting. USSC will be sending a notice to all of its non-USW employees and retirees about this process.
The Monitor has estimated that General Unsecured Creditors with Proven Claims will recover approximately 10% of the principal amount of their Proven Claims.
There will be many developments in the coming weeks. Please check the KM website frequently in order to keep informed about progress and important dates.