Steel Mills
June 23, 2016
Essar Steel Algoma Files Motion for Sale of Company
Written by Sandy Williams
Essar Steel Algoma filed a formal motion for approval of the sale of the company to KPS Capital. The asset purchase agreement will sell the assets of Algoma for a combination of cash sufficient to pay the outstanding liabilities under the DIP facility, a credit bid of the term loan debt, and assumption of certain liabilities. The deal includes continuing the employment of substantially all of Algoma’s unionized and non-unionized employees.
According the motion filed with the Superior Court of Ontario the sale comes with some purchase stipulations by KPS that include the following:
