Ivaco Shareholders Likely to Lose Investments

Ivaco Shareholders Likely to Lose Investments

John Wolz

Shareholders have likely lost their investments in Ivaco Inc. even if the company successfully restructures. Ivaco�s protection under the Canadian Companies� Creditors Arrangement Act has been extended to February 13, 2004.
Based on information sessions held with stakeholders, including major creditors, the Montreal Gazette reported the board has determined that common and preferred shareholders �are unlikely to receive any value for their shares under any restructuring scenario.�
Ivaco has blamed the weak North American steel industry for its troubles, city the higher Canadian dollar, U.S. anti-dumping duties and higher raw material, energy and transportation costs for the bankruptcy, the Gazette reported.
More than 200 jobs have been cut since the company entered protection from creditors last fall. CFO Albert Kassab and several other executives have resigned.
CEO Gordon Silverman told the Gazette that Ivaco �has made progress in implementing its initial phase of cost reductions and has, in meetings with its stakeholders, articulated its direction with respect to future reductions essential to providing a sustainable return to profitability.�
Ivaco is considering selling its fastener subsidiary, Ifastgroupe LP (see FIN, December 11, 2003).
Web: Ivaco.com �2004 FastenerNews.com