U.S. Steel has completed a sale of its former operations in Canada.
The Pittsburgh-based steelmaker, one of Northwest Indiana's largest employers, finalized a $127 million sale of U.S. Steel Canada to Bedrock Industries Group. The U.S. Steel subsidiary filed for bankruptcy in 2014, and the Ontario Superior Court of Justice recently gave the final sign-off on the sale, which already cleared all the requisite regulatory hurdles.
"In connection with the closing, U. S. Steel received approximately $127 million in satisfaction of its secured claims, including interest, and unsecured claims," the company said in a statement. "The terms of the plan and closing also included an agreement to provide mutual releases among key stakeholders, as well as a release of all claims against U. S. Steel regarding environmental, pension and other liabilities."
U.S. Steel, which bought the former Stelco mills in Ontario out of bankruptcy in 2007, will continue supplying iron ore pellets and other services to its former operations through January 2022.
It once employed more than 2,000 workers in Canada that included cold rolling finishing lines and coke ovens. U.S. Steel broke ties with its Canadian operations in 2015, taking the money-losing operation off its books, and then later announced it reached an agreement for a sale in November 2016.
New owner Bedrock Industries is a private holding company that runs metals, mining and natural resources firms.