DATE: 20060829

DOCKET: C44436, M33171

COURT OF APPEAL FOR ONTARIO

RE:

IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C., c. C-36, AS AMENDED AND IN THE MATTER OF A PROPOSED PLAN OF COMPROMISE OR ARRANGEMENT WITH RESPECT TO STELCO INC., AND OTHER APPLICANTS LISTED IN SCHEDULE “A”

APPLICATION UNDER THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. C-36 AS AMENDED

BEFORE:

GOUDGE, SHARPE AND BLAIR, JJ.A.

COUNSEL:

Paul Macdonald, Andrew Kent and Brett Harrison, for the Informal Independent Converts’ Committee

Michael E. Barrack and Geoff R. Hall, for Stelco Inc.

Robert Staley and Alan Gardner, for the Senior Debenture Holders

Fred Myers, for Her Majesty the Queen in Right of Ontario, and the Superintendent of Financial Services

Ken Rosenberg, for United Steelworkers of America

A Kauffman, for Tricap Management Ltd.

Kyla Mahar, for the Monitor

Murray Gold, for the Salaried Retirees

Heath Whitley, for CIBC

Steven Bosnick, for U.S.W.A. Loc. 5328 and 8782

HEARD & ENDORSED:

November 14, 2005

Application for Leave to Appeal, and if leave be granted, an appeal from the Order of Farley J. dated November 10, 2005.

ADDENDUM

R. A. BLAIR J.A.:

[1] Reasons for judgment were released in this matter on November 17, 2005.

[2] Subsequently, the court was advised that the reference to “Subordinated Debenture Holders” in the first sentence and at the beginning of the second sentence in paragraph 11 of the reasons may be erroneous and that the reference should be “Senior Debt Holders”. We agree.

[3] For clarity, this endorsement is issued amending paragraph 11 of the reasons to read as follows:

[11] The Subordinated Debenture Holders contend that the Turnover Payment provisions distinguish their interests from those of the Senior Debt Holders when it comes to voting on Stelco’s Proposed Plan. They say that the Senior Debt Holders’ interest in maximizing the amounts to be made available to unsecured creditors ends once they have received full recovery, in part as a result of the Turnover Payments that the Subordinated Debenture Holders will be required to make from their portion of the funds. On the other hand, the Subordinated Debenture Holders will have an interest in seeking more because their recovery, for practical purposes, will have only begun once that point is reached.

“R.A. Blair J.A.”

“I agree S.T. Goudge J.A.”

“I agree Robert J. Sharpe J.A.”