U.S. Steel Canada bankruptcy protection extended again
Judge grants extension while possible sale is being worked out behind the scenes
A judge in downtown Toronto granted an extension on the court-supervised restructuring process that U.S. Steel Canada has been going through for more than two years.
A busload of pensioners and steelworkers from both Hamilton and Lake Erie went to Toronto for the hearing. And an attorney for Local 1005 reminded the court of the union's three priorities as a potential sale is worked out: Jobs, pensions and benefits.
Justice Herman Wilton-Siegel granted an extension under the Companies' Creditors Arrangement Act to March 31, 2017.
That extension comes as the parties negotiate behind the scenes to work out a deal with a possible buyer, Bedrock Industries.
Private equity investment firm Bedrock Industries announced a memorandum of understanding with the province back in September, and the U.S. Steel former parent corporation signed on earlier this month.
The union local representing steelworkers at the Lake Erie U.S. Steel Canada plant signed a "letter of support" last week in favour of the Bedrock Industries bid to buy the company, but the Hamilton local, 1005, remains wary.
Local 1005 includes 9,000 retirees and 540 active members.