Steel Mills
June 1, 2017
Court Decision is Setback for Algoma
Written by Sandy Williams
A surprise court decision on May 30, denied a request by Canadian steel mill Algoma for approval of a DIP extension agreement and the appointment of a restructuring committee.
The current DIP loan expired on April 30, 2017. The agreement would have extended the maturity of the $164 million loan to August 31 with an automatic extension to September 30, if Algoma makes principal prepayments equal to or greater than $35 million between May 1, 2017 and August 31, 2017. The extension through September could have also been approved by a 60 percent vote of the DIP lenders.
