Steel Mills

Essar Algoma Gets Another 30 Days to Finalize Sale

Written by Sandy Williams


Essar Steel Algoma announced on Tuesday that it has received an extension to its Debtor-in-Possession financing facility (DIP).

The Ontario Superior Court of Justice approve the amendment and extension on January 31, extending the DIP to March 31 with the option of a further thirty day extension. Stay of proceedings has also been extended to March 31.

Essar Steel Algoma CEO Kaylan Ghosh expects Algoma income during the extension period to cover operating expenses during the period but said the extension was necessary to complete the sale of the company.

Said Ghosh in a news release, “Although the Company fully expects to generate sufficient funds for operating expenses during the extension period, we have not yet been successful in completing a transaction, and thus the extension was necessary. We continue to operate business as usual while we look to engage in meaningful discussions with the union in pursuit of an agreement that works for all parties.”

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