The judge in U.S. Steel Canada's creditor protection case has refused to lift the curtain of secrecy shielding the agreement under which the federal government dropped a lawsuit against the company.
In a decision posted Wednesday morning, Superior Court Justice Herman Wilton-Siegel ruled he lacks the authority to order release of the controversial deal – only the Minister of Industry can do that and he has steadfastly refused.
The city, USSC unionized workers and retirees sought a court order to release details of the argreement as part of an effort to understand company claims in its creditor protection action.
They argued that without complete knowledge of the company's financial affairs, they are at an unfair advantage in trying to protect the rights of workers and retirees in restructuring negotiations.
In his ruling, Wilton-Siegel said he has some sympathy for that argument, but can't help.
"The concern for disclosure expressed by the moving parties that has prompted this motion is reasonable and understandable. As participants in negotiations respecting a restructuring of USSC they seek disclosure of the nature and extent of any current obligations of USS in respect of USSC in order to assess the impact, if any, of restructuring proposals of USSC and any other proposed investors on such undertakings," he wrote.
"In the absences of consent by USS or enforcement proceedings brought by Industry Canada they are unable to obtain such information."
The confidentiality clauses of the Investment Canada Act, he added, "establish a very tight nondisclosure regime in furtherance of the purposes of the legislation."
Under those rules, he wrote, "The court has no authority to override these provisions regardless of its views of the potential benefits of disclosure in the present circumstance."
In 2007, the federal government approved the takeover of Stelco by U.S. Steel in exchange for promises about production and employment levels in Canada.
Within a year of taking over, however, the American company began to break every one of those promises, citing the collapse of world demand for steel. In 2009, the government sued to enforce the original promises but in 2011 it suddenly dropped the case in exchange for more promises.
Source:thespec.com
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