Ontario, Bedrock sign memorandum to aid with U.S. Steel Canada restructuring
September 21, 2016
By The Canadian Press
Sept. 21, 2016 – The Ontario government and Bedrock Industries Group have entered into a memorandum of understanding to aid the restructuring of U.S. Steel Canada, which is in court-supervised creditor protection proceedings.
The aim of the restructuring is to protect jobs, pensions and ongoing operations at the company’s Hamilton and Lake Erie facilities.
The terms of the memorandum of understanding are confidential until the court process allows them to be made public.
The Ontario government has agreed to a framework that will support an acquisition proposal from Bedrock to protect pensions and help with providing post-employment benefits.
The province has also agreed to support the development of industrial lands on behalf of pensioners in order to promote economic development in the Hamilton area while protecting the environment.
The memorandum of understanding is subject to a number of conditions including approvals by the court that is supervising the creditor protection proceedings and collective bargaining agreements with union locals.