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Essar Steel Algoma in discussions with noteholders

Monday, June 16, 2014   by: SooToday.com Staff
NEWS RELEASE
 
ESSAR STEEL ALGOMA INC.
 
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Essar Steel Algoma Inc. announces discussions with noteholders 
 
SAULT STE. MARIE, ONTARIO - (June 16, 2014) - As part of Essar Steel Algoma Inc.’s (“Algoma”) refinancing and recapitalization efforts, Algoma has entered into confidential discussions with investors representing approximately seventy per cent of the 9.875% US$385mn senior unsecured notes.
 
Algoma also has executed non-disclosure agreements and is engaged in discussions with advisors representing an ad hoc group of holders of 9.375% US$400mn senior secured notes. 
 
The purpose of these discussions is to ensure a permanent capital structure for Algoma and to strengthen the balance sheet for the benefit of the stakeholders.
 
Given the constructive nature of the ongoing discussions, Algoma has elected to utilize the grace period for the June 15th interest payment.
 
Algoma’s debt agreements allow for a 30-day grace period to make this payment. 
 
As Algoma continues these discussions, it is continuing normal business operations, providing the same high levels of service and reliability to customers and meeting ordinary course obligations, such as employee pay and benefits, regulatory obligations, and trade, vendor and similar obligations. 
 
About Essar Steel Algoma Inc.
 
Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario. As a fully integrated steel producer, the Company derives its revenues primarily from the manufacture and sale of hot and cold rolled steel products including sheet and plate. 
 
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Comments
16
Note: Comments that appear on the site are not the opinion of SooToday.com. If you see an abusive post, please click the link beside the post to report it.
itsme29 6/16/2014 9:52:52 PM Report

I think in laymans terms all that means is you cant just keep borrowing forever there comes a point where you have to payback your loans and bills
Wisenheimer 6/16/2014 9:56:01 PM Report

Tell that to Kathleen Wynne.
IgnorantNortherner 6/16/2014 10:44:59 PM Report

and to her supporters of the "liberal" "majority"...

No one that gets a gov't job today will ever see that pension. I know they're too ignorant to grasp that, but that is the mathematical reality of the situation we find ourselves in. Ah well...

Gotta love money as debt, fractional reserve banking and usury. /sarc
Justin Tetreault 6/16/2014 11:02:17 PM Report

Get over it. The Liberals won. By a lot.
steelworker 6/17/2014 1:55:33 AM Report

Justin: get a real job.
Berty 6/17/2014 2:10:41 AM Report

Liberals won, just goes to show how many people pay attention to our provincial situation...they put us in major debt, yet everyone votes them back in...ya, that makes sense!!! If you don't pay attention, why vote at all>??? but if you vote, you get the right to complain>??? Yep...were screwed now! lol
houston 6/17/2014 6:30:25 AM Report

It's not just our government that's the problem. We have too many people that don't want to work and just want hand outs by taking advantage of the system. The Liberals were told by the Federal government that they must balance their budget. Now that they have a majority, they can do what they want.
Wisenheimer 6/17/2014 6:52:39 AM Report

Pigs at the trough always vote for the slop master, no matter how many he slaughters out behind the barn.
I'm In 6/17/2014 6:56:42 AM Report

IgnorantNortherner I didn't vote Liberal cause I am a public servant and pay into my pension and they will do what ever they want now that they have majority, OPSer's are in trouble.
Wisenheimer 6/17/2014 6:57:56 AM Report

Yes Justin ... ironic, they will be the ones the bond market makes clean up the mess.
right wing 6/17/2014 7:18:17 AM Report

Yes the Liberals won.
Ontario has lost and will continue to lose but hey who cares right.
Now we get that budget...the one that has another payroll tax, increases in energy costs and more business will leave Ontario and less will start up.
Congrats Southern Ontario for allowing this (and the Sault)...
Now I'm convinced that Ford just might win in Toronto as Mayor....it seems that criminal behavior is rewarded in T.O.
JJ48 6/17/2014 7:24:49 AM Report

I thought this story was about ESSAR teetering on going under ? Between that and the OLG building this city should be fun to watch in the year or two. NOT
theprotector 6/17/2014 8:36:44 AM Report

wow what a sore loser
mac headrick 6/17/2014 8:52:36 AM Report


Justin above is correct the Liberals won - perhaps. Remember this the Liberals will not have Tim Hudak to kick around for the next four years. No excuses the ball is in their court.

To me the leason here was the Conservatives once again lost. Now to be fair the NDP caused the election without a platform not even a campaign bus well dumb and dumber.

The Liberals were smart enough to take advantage of an extremely stupid Conservative platform and a non-existant NDP plan.
Mr. Poster 6/17/2014 8:54:08 AM Report

Is Essar really that bad off? Are they not getting orders for steel? What say you workers .
Mr. Poster 6/17/2014 8:59:25 AM Report

I do not have a facebook account. Therefore I can no longer post general comments...that sucks.The same thing happened over at Local2. Oh well...back to SOONET.
Comments
16
Note: Comments that appear on the site are not the opinion of SooToday.com. If you see an abusive post, please click the link beside the post to report it.
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