Stelco, Canada's largest steelmaker, announced yesterday that it will seek bankruptcy protection as part of efforts to restructure its money-losing business.
Stelco racked up C$168 million (US$126m) in losses through the first three quarters of 2003.
"We are taking this action to address our problems, protect our stakeholders, develop a restructuring plan and become a viable steel producer," said Courtney Pratt, Stelco's president and CEO. "We will continue to pay wages and salaries to our employees and to pay suppliers for goods and services," he said.
Pratt said the company has confirmed C$425 million (US$319m) in financing to conduct business during the restructuring. The lending syndicate, led by CIT Business Credit Canada, includes GE Commercial Finance and Fleet Capital.
