On March 26, Essar Steel Algoma announced a third loan extension as it continues to emerge from CCAA protection. The company received another 30-day extension before its debtor-in-possession financing expires on April 30, 2017.
Essar Steel Algoma Inc. filed for creditor protection under the Companies Creditors Arrangement Act on November 9, 2015. The Sale and Investment Solicitation Process was launched on February 11, 2016.
Prior to this latest development, on March 6, an Ontario judge dismissed a motion to reopen bidding for Essar Steel Algoma by Essar Global. Essar Capital Limited had requested for bidding to reopen to allow Essar Global to submit a bid. Essar Global has the support of USW Locals 2251 and 2724 and Algoma retirees who had asked the court for permission to continue discussions with Essar Ontario, an entity backed by Essar Global.
On March 1, mediation dates were scheduled for late March for mediation amongst the parties, specifically the company, the successful bidder identified through the court-approved Sale and Investment Solicitation Process, and representatives of the union. As a result of the loan extension, negotiations on the agreement are delayed an additional month. The process has been hampered by lawsuits and union disputes.