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Good news coming for Sault steelmaker?

Coming announcement on “new chapter” for Essar Steel Algoma
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Algoma Steel Platemaking

Essar Steel Algoma has released a media advisory heralding a “new chapter” in the Sault Ste. Marie steel plant’s history.

An announcement is scheduled for May 26 at 11 a.m. at the No. 2 Gate on West Street followed by a photo opportunity and refreshments.

The financially struggling producer of plate and sheet steel has been under creditor protection since November 2015.

SooToday reported last week that the judge in the company’s restructuring proceedings was being petitioned for a fourth extension of Essar Steel Algoma’s debtor-in-possession financing until Aug. 30, 2017, the fourth extension of the lending arrangement since 2015.

The most recent version of the arrangement expired Apr. 30. Essar Steel Algoma was also asking the court to approve a new restructuring committee "to act as the independent guiding mind of Algoma," overseeing and directing the company's restructuring efforts.

"A restructuring committee of individuals experienced in turnaround situations may also be of assistance in instilling confidence amongst the Algoma’s key stakeholders and achieving consensus among such parties," the company said in restructuring documents.



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