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Update regarding Essar Steel Algoma

SooToday has also been tracking other recent developments in the Essar Algoma insolvency case, but our legal counsel advise that disclosure of the material may be prohibited by court order
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FILE PHOTO: Essar Steel Algoma. Kenneth Armstrong/SooToday

The following statement was issued late Thursday afternoon by a group comprised of a majority of the term loan lenders of Essar Steel Algoma.

The term lenders are hoping to acquire Essar Steel Algoma through the company's sale and investment solicitation process (SISP), intended to pursue all prospects of selling or refinancing the business, in whole or part, to ensure the steel mill remains a going concern.

SooToday has been tracking other recent developments in the Essar Algoma sale and investment process, but our legal counsel advise that disclosure of that material may be prohibited by court order.

We will report on these developments once the situation is clarified.

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Essar Steel Algoma’s secured creditors launch informational website for Algoma stakeholders

Secured creditors committed to working with all stakeholders to create a sustainable, competitive Algoma

All stakeholders urged to consider critical information about Algoma’s future at algomasecuredcreditors.ca

TORONTO – April 13, 2017 – A group comprising a majority of the term loan lenders of Essar Steel Algoma Inc. (“Algoma”) launched a website today, algomasecuredcreditors.ca, to provide vital information to all of Algoma’s stakeholders about the future of the company.

Dan Gagnier, spokesperson for the secured creditors, said, “We all want Algoma to be successful, and having been through four restructurings in its history, the company has not embraced the structural changes or received the additional investment it desperately needs to ensure sustainable operations. It is our plan and our primary interest to help the company emerge from CCAA protection with the best chance of competing across any market cycle.”

Added Gagnier, “The business has now reached another critical point in its history and if Algoma is to survive long-term, it must become a more efficient manufacturer with a more flexible cost structure. Our restructuring plan is the only plan that sets up Algoma for long-term success by providing Algoma with over C$500 million of new capital, reducing debt by C$1.5 billion and benefiting Algoma’s various stakeholder groups, including its employees and retirees. Now is the one and only chance to set up Algoma for long-term success and we urge all stakeholders to give our restructuring plan the careful consideration it deserves.”

Additional information about our restructuring plan can be found at algomasecuredcreditors.ca.

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EDITOR'S NOTE: Comments on the above article have been closed for legal reasons



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David Helwig

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David Helwig's journalism career spans six decades beginning in the 1960s. His work has been recognized with national and international awards.
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