Steel Mills
Essar Steel Algoma Files For Bankruptcy Protection
Written by Sandy Williams
July 20, 2014
Essar Steel Algoma has filed for Chapter 15 bankruptcy protection at the U.S. Bankruptcy Court in Delaware and the Ontario Superior Court of Justice as part of its restructuring efforts.
The filing under Chapter 15 in the U.S. is a recognition proceeding,” said a spokesperson for Essar Steel Allgoma. “The sole purpose of the US filing is to ensure that the bondholders and the Company’s debt holders are bound by the Canadian court orders as issued under the Canada Business Corporations Act.”
Essar Steel Algoma reported liabilities of more than $1.2 billion in its bankruptcy documentation with the US Bankruptcy Court in Delaware. The bankruptcy filing is in conjunction with an agreement by parent company Essar Global Fund Limited to help with refinancing and restructuring. EFGL, which holds more than 70 percent of its 9.875 percent senior unsecured notes, will provide a cash infusion of up to $300 million to Algoma. The agreement was negotiated after Algoma could not fulfill its interest payment on the notes in June.
Algoma CEO Kaylan Ghosh said the deal with EFGL will result in recapitalized business and refinanced capital structure. “This path offers the best means to maximize long-term value while offering certainty of supply for customers and continued security for our employees, retirees, vendors and all other important stakeholders, which were key considerations.”
Algoma said the extreme winter conditions that delayed ore shipments in the first half of the year prevented the company from producing at full capacity and taking advantage of improved steel demand and pricing.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Algoma to shut down line in Ontario ahead of EAF start
The 106” Mill was part of Algoma's plate and strip combination facility.
Nippon trial vs. US government to begin early next month: Report
Nippon Steel’s litigation against the US government is set to begin in early February, according to a report by Japan’s Kyodo News Agency. Nippon will file its opening brief on Feb. 3. And both parties will conclude their claims by March 17 in the US Court of Appeals for the District of Columbia Circuit, Kyodo […]
Nucor carbon targets certified by GSCC
Nucor’s “ambitious” carbon targets by the end of the decade and beyond have been certified by the Global Steel Climate Council (GSCC). The Charlotte, N.C.-based steelmaker used a base year of 2023 for its science-based emissions targets (SBET). It set an SBET of 0.975 metric tons (mt) of CO2 emissions per mt of hot-rolled steel […]
SSAB halts talks with Feds on Miss. green steel plant
The Department of Energy's Industrial Demonstrations Program page states that it is no longer moving forward with SSAB.
Cleveland-Cliffs CEO seeks ‘American solution’ for U.S. Steel
He said a new entity would operate under the U.S. Steel name and would retain its Pittsburgh headquarters.