Russel Metals Obtains Approval to Amend its Convertible Debentures
14 Dezember 2010 - 10:13PM
Marketwired
Russel Metals Inc. (TSX: RUS) today announced that the holders of
its 7.75% convertible unsecured subordinated debentures approved an
amendment to the Trust Indenture removing the Company's right to
settle conversions prior to maturity in cash in lieu of common
shares.
Marion E. Britton, Vice President and Chief Financial Officer of
the Company stated "In preparing to report our financial results
under International Financial Reporting Standards it was determined
that the Company's ability to elect to settle debenture conversions
in cash is considered to be a derivative under IFRS and could
result in significant volatility in our earnings based on movement
of the stock price. The amendment eliminates this volatility and
will align our cash flow with our operating results."
Russel Metals is one of the largest metals distribution
companies in North America. It carries on business in three
distribution segments: metals service centers, energy tubular
products and steel distributors, under various names including
Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier
Richler, Arrow Steel Processors, B&T Steel, Baldwin
International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel
Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel,
Metaux Russel Produits Specialises, Milspec, Norton Metals, Pioneer
Pipe, Russel Metals Specialty Products, Russel Metals Williams
Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular
& Supply, Wirth Steel and York-Ennis.
Statements contained in this press release that relate to Russel
Metals' beliefs or expectations as to certain future events are not
statements of historical fact and are forward-looking statements.
Russel Metals cautions readers that there are important factors,
risks and uncertainties, including but not limited to economic,
competitive and governmental factors affecting Russel Metals'
operations, markets, products, services and prices that could cause
its actual results, performance or achievements to be materially
different from those forecasted or anticipated in such
forward-looking statements.
The forward-looking statements in this document reflect
management's current beliefs and are based on information currently
available to management. The material assumptions applied in making
the forward-looking statements in this document include the
following: demand from the manufacturing, resource and construction
segments of the Canadian economy and oil and gas prices have all
been significantly negatively impacted by the economic conditions
and these conditions will improve at a slow pace throughout 2010;
the price of steel will remain stable during the fourth quarter due
to lack of demand; and the value of the Canadian dollar relative to
the U.S. dollar will be range bound consistent with the third
quarter of 2010. Although the forward-looking statements contained
in this document are based upon what management believes to be
reasonable estimates and assumptions, Russel Metals cannot ensure
that actual results will not be materially different from those
expressed or implied by these forward-looking statements.
Contacts: Russel Metals Inc. Marion E. Britton, C.A. Vice
President, Chief Financial Officer and Secretary (905) 819-7407
info@russelmetals.com www.russelmetals.com
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