Steel Mills
November 10, 2015
CCAA Protection for Essar Steel Algoma Triggered by Cliffs Dispute
Written by Sandy Williams
Essar Steel Algoma announced Monday that it has entered Companies Creditors Arrangement Act (CCAA) protection. It is the third time Algoma will seek restructuring under CCAA—the first time in 1991 and again in 2001. In November 2014 Algoma completed a recapitalization and refinancing plan supported by Essar Global Fund Ltd.
Essar Algoma has struggled to meet debts and be competitive in the current challenging steel market. In FY 2015 and Q1 2016, Algoma reported consolidated net losses of CDN $20.7 million and CDN $80.7 million, respectively. The company has total funded debt obligations of USD $1.06 billion (CDN 1.4 billion).
