Local news reported Tuesday that US Steel Canada, which has recently applied for creditor relief, owes over $94 million to contractors and suppliers, including 190 companies in the Hamilton, Ontario area, but the preliminary list of creditors is expected to grow.
Under the Companies Creditors Arrangements Act, in order for US Steel Canada to avoid bankruptcy the company has to negotiate a debt restructuring plan with its creditors so they accept something less than their full claims.
According to court materials filed for its application for protection, US Steel Canada disclosed assets of more than $1.9 billion and liabilities exceeding $3.8 billion, including a secured loan to the US-based parent firm for $201.4 million and an unsecured loan of $1.4 billion.
