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Essar Steel Algoma could be on its way out of CCAA

Steelworkers to vote on tentative agreement with creditors
FILE PHOTO: Essar Steel Algoma. Kenneth Armstrong/SooToday

A major hurdle for Essar Steel Algoma to emerge from creditor protection could be cleared.

United Steelworkers Local Union 2251, the largest union at the Sault Ste. Marie steelmaker, has reached a tentative agreement with the group of secured creditors involved in the restructuring effort.

In a May 10 news release from the 2251 negotiating committee said a comprehensive memorandum of agreement must be developed and signed off by all parties.

The union said information meetings will be announced in the coming days.

A ratification vote will be held subsequent to the information meetings.

The sheet and plate producer entered Companies’ Creditors Arrangement Act (CCAA) protection in November 2015.