Statement by Finance Minister Charles Sousa on the Ontario Government Filing Notice of Limited Objection with Regards to US Steel
Today, Charles Sousa, Minister of Finance, released the following statement regarding the Ontario government's Notice of Limited Objection to US Steel Canada's proposal to obtain debtor-in-possession financing for its operations using a loan from its parent company, US Steel:
"The Province of Ontario has a significant interest in US Steel Canada's (USSC) insolvency and restructuring. Ontario supports a restructuring that is based on consensus and that gives the best value to employees, retirees, creditors, and communities.
To that end, the province would be supportive of a fair and balanced debtor-in-possession credit facility that enhances the prospects of a successful restructuring. However, the province is objecting to certain parts of US Steel's proposal to finance its Canadian operations as USSC restructures. Specifically, this proposal could negatively affect USSC's employees and pensioners, as well as the environmental rights of the province.
We have filed this Notice of Limited Objection to protect the interests of the province and USSC's key stakeholders.
The province is a creditor of US Steel Canada pursuant to the $150 million Province of Ontario Loan Agreement. We also have an existing agreement with US Steel that requires the parent company to guarantee certain payments on their pension obligations.
The province is working to ensure that the company lives up to these obligations, does not put the repayment of inter-company loans ahead of its pension obligations, and continues to have responsibility for any environmental liabilities associated with its Canadian operations.
The province has always been, and continues to be supportive of, a consensual solution, working with the company to protect the interests of all those affected."