U. S. Steel And Bedrock Industries Agree To Restructuring And Sale Of U. S. Steel Canada
PITTSBURGH, Nov. 1, 2016 /PRNewswire/ -- United States Steel Corporation (NYSE: X) ("U. S. Steel" or "the Corporation") announced today that it has agreed to proposed terms with Bedrock Industries Group LLC ("Bedrock") regarding the sale and transition of ownership of U. S. Steel Canada, Inc. ("USSC") to Bedrock. The transaction is subject to satisfactory completion of customary definitive documentation and 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"). As part of the CCAA proceedings, U. S. Steel submitted secured and unsecured claims of approximately CAD$2.2 billion. Should the transaction be approved by the Ontario Superior Court of Justice and ultimately close, U. S. Steel will receive approximately $126 million in satisfaction of its secured claims, including interest, and unsecured claims. The proposed terms also include an agreement to provide mutual releases among key stakeholders, including a release of all claims against U. S. Steel regarding environmental, pension and other liabilities.
As part of the proposed transition in ownership, U. S. Steel will continue to provide certain shared services to USSC and will enter into an agreement to supply USSC with all of its requirements for iron ore pellets through 2021.
This news release contains certain information that may constitute forward-looking statements within the meaning of Section 27 of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. All statements other than statements of historical fact are forward-looking statements.
Generally, we have identified such, forward-looking statements by using the words "believe," "expect," "intend, " "estimate," "anticipate, " "project, " "target, " "forecast," "aim, " "should," "will," and similar expressions or by using future dates in connection with any discussion of, among other things, trends, events or developments that we expect or anticipate will occur in the future. However, the absence of these words and similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only the Corporation's beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside the Corporation's control. It is possible that the Corporation's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.
Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statement because such statements speak only as of the date when made. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Forward-looking statements include. without limitation, statements concerning the implementation of CCAA proceedings, entry into definitive documentation, completion of a transaction, the reorganization or restructuring of the assets, business and financial affairs of USSC. In addition, the proposed terms are non-binding and any negotiated transaction would be subject to standard closing conditions, including that all required corporate, regulatory and court approvals are obtained. There is no assurance that a transaction will be completed. In additional, the forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Corporation's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to: the implementation and impact of a transaction in respect of the reorganization or restructuring of the assets, business and financial affairs of the USSC; receipt of all required approvals to implement transaction; USSC's ability to maintain relationships with suppliers, customers, employees, stockholders and other third parties in light of the CCAA proceedings; and the risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 31, 2015, and those described from time to time in our future reports filed with the Securities and Exchange Commission; as well as other general assumptions regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the USSC's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of USSC to operate its business in a safe, efficient and effective manner; the effect of current plans; the timing and costs of capital expenditures; the regulatory framework regarding environmental matters in the jurisdiction in which USSC operates; and the ability of USSC to successfully market its products and services.
United States Steel Corporation, headquartered in Pittsburgh, Pa., is a leading integrated steel producer and Fortune 250 company with major production operations in the United States and Central Europe. The company manufactures a wide range of value-added steel sheet and tubular products. For more information about U. S. Steel, please visit www.ussteel.com.
Bedrock Industries is a privately funded holding company focused on owning and operating metals, mining and natural resources assets and related special situations. For more information about Bedrock, please visit www.bi15.com.
SOURCE United States Steel Corporation
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