Slater Steel to Restructure Under CCAA and Chapter 11
June 3, 2003
Slater Steel Inc., Mississauga, Ontario, Canada, (SSI) announced that it, and certain of its U.S. and Canadian subsidiaries have filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA) in Canada. Slater and certain of its Canadian subsidiaries have also filed for protection under Section 304 of the U.S. Bankruptcy Code, and Slater's U.S. subsidiaries have filed for protection in the U.S. under Chapter 11 of the U.S. Bankruptcy Code. The concurrent filings will allow Slater to develop a restructuring plan to address its current debt, capital and cost structures. In conjunction with the filing, the Company has secured a Cdn$45.0 million debtor-in-possession (DIP) financing facility from its existing lending syndicate. The Company anticipates that the DIP financing will be sufficient to fund its operations during the restructuring process. The Company said that its operations would not be affected by the filings and that it would continue to operate in the normal course of business.