Steel Mills
July 14, 2016
KPS Withdraws from Consortium, Algoma to Proceed with Term Lenders
Written by Sandy Williams
SAULT STE. MARIE – Essar Steel Algoma Inc. (Algoma) has received notice from the Term Lenders that the Consortium Agreement between KPS Capital Partners LP and certain Term Lenders has been terminated. The Term Lenders have indicated that they remain committed to a going-concern outcome for Algoma and all of its stakeholders, and to closing the transaction contemplated by the Asset Purchase Agreement as soon as possible.
As a result of this development Algoma is seeking an adjournment of the motion for approval of the Asset Purchase Agreement.
