Barzel Industries Canada Inc. - Bankruptcy

Barzel Industries Canada Inc. was assigned into bankruptcy in Ontario on December 22, 2011 under estate file 32-1575492, with the proceeding cited to subsection 49(2) and paragraph 158(d) and to subsections 50(2) and 62(1) of the Act. The Statement of Affairs sworn as at that date shows no assets against liabilities of $128,739,040.28, a deficiency in the same amount, comprising $8,739,040.28 of unsecured claims and a $120,000,000.00 balance of secured claims. There are no preferred creditors and no contingent or trust claims. Substantially all of the company's assets were sold in November 2010 in CCAA and Chapter 11 proceedings, leaving the estate with essentially nothing to realize. The secured claim is an intercompany loan from Barzel Finco Inc. under a Canadian collateral agreement, with security valued at $0.00 and $20,000,000.00 carried as unsecured. Larger trade and tax claims include ArcelorMittal Dofasco Inc. at $1,964,465.80, the Ministère des Finances du Québec at $1,682,063.90 and the Receiver General of Canada at $1,375,000.00. The matter remains active.