Steel Mills
February 16, 2017
Essar Steel Algoma Production in January Best Since 2014
Written by Sandy Williams
Essar Steel Algoma, under protection by the Companies’ Creditors Arrangement Act since November 2015, held its own in production and sales in January. January production surpassed 232,000 tons making it the highest single month production since September 2014. Improved selling prices and increased shipments brought in revenue of CAD $153 million in January for an adjusted EBITDA of $22 million for the month, $7 million higher than December. The company shipped an estimated 209,317 tonnes in January.
Essar Steel Algoma’s court monitor Brian Denega addressed in his Twenty-fifth Monitors Report a motion by Essar Capital to reopen the Sales Investment and Solicitation Process (SISP). Denega said in the report he does not believe there is a need to reopen the SISP. He suggests any party that is serious about acquiring or restructuring Algoma engage in Negotiations with the Term Lenders “rather than negotiating through the press, which tends to be not only unproductive but may well be harmful” to the CCAA proceedings.
