Steel Mills

Essar Steel Algoma Gets DIP Extension

Written by Sandy Williams


Essar Steel Algoma will get a third loan extension while it continues to hash out an agreement to emerge from CCAA protection. The company has another thirty day extension before its debtor-in-possession financing expires on April 30.

According to the Twenty-sixth Report of the Monitor filed on March 21, the extension comes at “a critical time when the Applicants continue to advance restructuring efforts and proceed with labour mediation.”

Algoma shipped approximately 194,000 net tons in February for revenue of CAD $157 million (US $117.3 million). Average selling price per ton rose to $739 from $700 in January and prices continue to improve in March.

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