Steel Mills
March 30, 2017
Essar Steel Algoma Paying Down Debt
Written by Sandy Williams
Essar Steel Algoma is making progress on paying its debts. According to the latest (27th) Monitors report, Algoma has repaid $42.7 million as of March 25, 2017 through weekly “cash sweeps” to its Debtor in Possession lenders. Another $2.5 million will be paid on April 3 which will result in reducing the outstanding balance under its second DIP Amendment to approximately $164.8 million.
The extension of Algoma’s funding to a third DIP amendment requires the payment of a forebearance fee of $1.25 million and a further extension fee of $800,000. As of May 5, 2017 the outstanding balance of the DIP is estimated at US $165 million and cash balance for the company CAD $28 million (approximately $21 million USD).
