U.S. Steel bankruptcy court to see secret deal with feds

Written By Unknown on Kamis, 09 Oktober 2014 | 22.46

Industry Canada confirmed Wednesday it will hand over a secret agreement it made with U.S. Steel in 2011 to the Ontario court handling the company's bankruptcy.

But that doesn't mean the deal will finally become public.

Several U.S. Steel Canada stakeholders asked for disclosure of the 2011 settlement, which came after the government launched legal action against the company in 2009 when it shut down its operations in 2009. 

The agreement has never been made public, and it will be up to the court whether or not to release the document. 

In the settlement, U.S. Steel, among other commitments, agreed to operate its Hamilton and Nanticoke, Ont., plants until at least 2015 and spend at least $50 million on capital improvements at the Canadian facilities. Under its restructuring plan, the company intends to sell both plants by next October. 

In court on Wednesday, the bankruptcy case's monitor from Ernst & Young said talks were underway with Industry Canada to get access to the agreement.

"We're in discussions to get the undertaking on a confidential basis," Alex Morrison told the judge.


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