U.S. Steel Canada Inc. (formerly Stelco) – September 3, 2020
September 2, 2020
We are pleased to report that on September 2, 2020 the Monitor commenced the third and final distribution from the Non-USW Settlement Fund (described below). We have been advised by the Monitor that distributions should be received by eligible retirees in the coming days.
As previously reported, in our capacity as Representative Counsel to all non-USW employees and retirees of USSC, we reached a settlement on April 19, 2017 (the “Non-USW Settlement Agreement“) that resulted in the creation of a separate $9 million fund (the “Non-USW Settlement Fund“) for the following claims:
a) certain claims for unfunded supplemental pension losses; and
b) certain claims arising from cessation of employment.
Under the Non-USW Settlement Agreement, claims exceeding $7,500 were removed from the class of General Unsecured Creditors and were instead granted a pro rata share of the $9 million Non-USW Settlement Fund, thereby increasing the recovery on these claims from approximately 10% to 30%. (Claims not exceeding $7,500 were paid the lesser of $7,500 and the actual amount of their claim.)
The September 2, 2020 distribution also represents the interest that accrued on the Non-USW Settlement Fund between the first and second distributions that were previously paid out by the Monitor in December, 2018 and on July 23, 2019, respectively. As the terms of the Non-USW Settlement Agreement provide that claimants with claims exceeding $7,500 are to share on a pro rata basis in the amount in the Fund, such claimants are accordingly entitled to a distribution of the accrued interest as well.
The September 2, 2020 distribution to the eligible retirees represents the final distribution from the Non-USW Settlement Fund.
To view the Notice that was sent out by the Monitor to accompany the distribution, please click here.