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U.S. Steel, Bedrock Industries finalize restructuring and sale of U.S. Steel Canada

Staff Writer |
United States Steel Corporation announced that it has finalized an agreement with Bedrock Industries Group for the sale and transition of ownership of U. S. Steel Canada (USSC) to Bedrock.

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The transaction was finalized following requisite court and other approvals.

On Sept. 16, 2014, USSC applied for relief from its creditors pursuant to Canada's Companies' Creditors Arrangement Act (CCAA).

On June 9, 2017, the Ontario Superior Court of Justice sanctioned a second amended and restated plan of compromise, arrangement and reorganization pursuant to the CCAA (the Plan).

In connection with the closing, U. S. Steel received approximately $127 million in satisfaction of its secured claims, including interest, and unsecured claims.

The terms of the Plan and closing also included an agreement to provide mutual releases among key stakeholders, as well as a release of all claims against U. S. Steel regarding environmental, pension and other liabilities.

As part of the transition in ownership, U. S. Steel will continue to provide certain transition services to USSC and entered an agreement to supply USSC with all of its requirements for iron ore pellets through January 31, 2022.

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