ANNOUNCEMENT 09 Jun 2017
The total value of the loans may reach Can.$98 million (US$78.6 million) over varying time periods.
NUMBER OF INTERVENTIONS
On June 9, 2017 a court supervising the restructuring of U.S. Steel Canada Inc. (Stelco) under the Companies' Creditors Arrangement Act approved a plan that entails government support. Under one element of the plan, the provincial government will provide a fully-secured loan of $22 million in the first two years, to be repaid in the third and fourth year, as well as an interest-free loan of up to $66 million over 10 years to assist in the payment of other post-employment benefits (OPEBs). The 10-year term of the loan is intended to assist in providing OPEB coverage while balancing risk to the province and allowing time to plan for the future use of Stelco's lands to create additional value for pensions and OPEBs. The plan also provides for the government of Ontario to provide a fully-secured, 10-year loan of $10 million to the land vehicle to support its operations.