I told you this old company, which has been setting historical record profits ever since it was put into bankruptcy two years ago by its own management, had never received a default notice and restitution demand by the bond holders. I'm now going to prove it.

This bankruptcy action has been contrived by management and a Bay Street private capital firm, working closely with allies inside probably both Federal and Provincial Liberal governments, to steal the company for themselves.

The situation is so far out-of-control that I believe the resignations of the Ontario government, plus the Ontario Securities Commission regulators who report to the Minister of Finance, is in order.

Before I go further, I want to say again that the equity market in this country has been compromised, and the people in charge are allowing it to happen.

My motivation in bringing this matter to light is entirely just the simple concept that sunlight is the best disinfectant.

This matter ought to be an international embarrassment. It is true that I have maybe three readers I know who have Stelco shares, including my brother, but the total number of all those shares is now something like 10,000 shares, at something like $3,000 total value.

So for all intents and purposes, I am carrying on a fight to recover the integrity of capital markets in Canada, and nothing more. I do not now, nor have I ever been, a shareholder or bondholder in Stelco, and I have never personally known anybody in management or any vendor to that company. The closest I have ever been to Stelco is to drive by on the highway, like probably 10 million others.

To cut this short, I received the following letter, which arose from an investigation into matters presently in the courts:

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Bill, I have been reading the latest court submissions by the Senior Bondholder's group petitioning Judge Farley to block the recent Tricap/Province of Ontario plan. They have made some really eye-opening revelations as to the position of the senior bondholders through this entire CCAA process. Note particularly item 8: Titled, What Caused Stelco to File under CCAA?"

Here is the link to the document:

Among the assertions of the Senior Bondholder's group (SB) is:
1. The SB's didn't force the CCAA process and, in fact, were surprised by it's occurrence as they were being paid interest on schedule, believing that a long-term state of viability existed for Stelco, despite pension and operational problems that they thought were surmountable;
2. Un-secured creditors will end up with the equity in New Stelco to the detriment of secured creditors and other stakeholders (see Corporate Governance Issues item 6(d), page 8 of 28 of the pdf;
3. The SB's state they were being kept out of Tricap/Province negotiations and there was a clear and intentional lack of transparency and fairness that was favouring certain interests;
4. The SB's assert that both federal pension and bankruptcy legislation is being usurped by the Provincial Plan, which removes the 5.1 Election (more than 5 years to re-pay un-funded pension liabilities) from Stelco, but not GM. The removal of this election for Stelco kills any other offers and the threat of doing so during CCAA effectively harms the process to the point that other bidders are turned away from entering the fray. An election cannot be removed without pension legislation.

Needless to say, Judge Farley has rejected this petition and is allowing the Tricap/Province plan to go ahead to a vote, which is certain to be defeated, according to the SB's.

In the past I have targeted the SB's as the bud guys in this farce. It would appear to be even more sinister, since they now claim to be the injured party as a result of CCAA.

So who is really pulling the strings here that makes the Stephens/Farley show go on and on? I am absolutely convinced that this CCAA process and these prime participants (S & F) must be independently investigated for corruption, period!.

Perhaps the SB's and the shareholders should get together and petition the Supreme Court of Canada to intervene and suspend the entire CCAA process, thereby restoring the Company to it's rightful owners and putting the debt-holders back into proper line. Then there will be a number of legitimate re-financing proposals from around the world that will recognize the real value of Stelco. /T"

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I am shocked this Stelco charade continues to go on. To be fair to the newspaper reporters and commentators covering this story from the start, the majority of the facts have indeed come out. The public has had a chance to see what's going on at Stelco.

But you know what the problem is? People in positions able to take action here have no guts. Either that or they are part of the scam.

Why is the Prime Minister doing nothing? Well for starters his family company (held in a supposedly blind trust) is Stelco's primary shipper. And while the former Deputy Prime Minister (of this Banana Republic), Sheila Copps, ably represented the Stelco federal riding for years, as had her father been City mayor for years, all that history was brought to an end, just prior to the Stelco bankruptcy, when the Prime Minister decided to parachute a friend of his into her riding along with the Liberal Party political machinery, in order to steal the riding nomination from her. Copps, who was outraged, then took the matter to the RCMP.

That's how politics is played in this country, and why I have nothing to do with it.

So what I am saying is that I believe the Prime Minister, the Ontario Premier, the bankruptcy judge, the Stelco Reorganizing Officer (Hap Stephens), a Bay Street financial group, and the Ontario Securities Commission, are all in cahoots, and because of that, I call for a Royal Commission to investigate.

Either that, or let's start calling the Toronto Stock Exchange the Canadian Venture Exchange, because it appears that Canada has become just one big crapshoot.