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.
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SOURCE United States Steel Corporation