United States Steel Corporation announced 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.
Source : finance.yahoo.com