Cliffs Comments On Algoma Steel's Financial Restructuring.Business Editors CLEVELAND--(BUSINESS WIRE)--April 23, 2001 Cleveland-Cliffs Inc (NYSE NYSE See: New York Stock Exchange :CLF CLF The ISO 4217 currency code for Chile Unidades de Fomento. ) commented today on Algoma Steel's Order for protection under the Companies' Creditors Arrangement Act in Ontario, Canada. Algoma is a 45 percent owner in the Cliffs-managed Tilden Mining Company L.C., located in the Upper Peninsula of Michigan The Upper Peninsula of Michigan is the northern of the two major land masses that comprise the U.S. state of Michigan. It is commonly referred to simply as the Upper Peninsula, the U.P., or Upper Michigan, and more casually as the land "above the Bridge". . The other owners of the Tilden Mine are Cliffs at 40 percent and Stelco Inc. at 15 percent. Cliffs currently has less than $1 million in trade receivables from Algoma, all of which relate to rail transportation. As of last week, Algoma was current on its cash funding obligations at the Tilden Mine; however, it is premature to speculate on Algoma's actions subsequent to obtaining the Order. John S. Brinzo, Cliffs' chairman and chief executive officer, said, "We have a long and valued relationship with Algoma Steel ''See also Algoma (Disambiguation) Algoma Steel Corporation (TSX: AGA) was founded in 1902 by Francis Clergue, an American entrepreneur who had settled in Sault Ste. Marie, Ontario. which we would expect to continue. We are extremely disturbed that yet another North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. steel company has been forced to seek protection from creditors due to unfairly traded steel imports." The Tilden Mine was originally scheduled to produce 7.8 million tons of pellets in 2001. The production level was planned to be reduced to about 6.8 million tons. The timing and duration of the shutdown is now under review. The Tilden Mine employs about 800 individuals and has an annual local economic impact of over $200 million. The Empire and Tilden Mines, and Cliffs' other operations in Michigan, employ about 2,000 individuals. Cleveland-Cliffs is the largest supplier of iron ore products to the North American steel industry and is developing a significant ferrous metallics business. Subsidiaries of the Company manage and hold equity interests in five iron ore mines in Michigan, Minnesota and Eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
This news release contains predictive statements with respect to the Algoma bankruptcy that are intended to be made as "forward-looking" within the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protections of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties. Actual results may differ materially from such statements due to the actions which Algoma may take, the development of Algoma's restructuring plan and economic and market conditions at Algoma. The information contained in this document speaks as of the date of this news release and may be superceded by subsequent events. News releases and other information on the Company are available on the Internet at http://www.cleveland-cliffs.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion