TORONTO--(BUSINESS WIRE)--A group comprising a majority of the term loan lenders of Essar Steel Algoma Inc. (“Algoma”) launched a website today, algomasecuredcreditors.ca, to provide vital information to all of Algoma’s stakeholders about the future of the company.
Dan Gagnier, spokesperson for the secured creditors, said, “We all want Algoma to be successful, and having been through four restructurings in its history, the company has not embraced the structural changes or received the additional investment it desperately needs to ensure sustainable operations. It is our plan and our primary interest to help the company emerge from CCAA protection with the best chance of competing across any market cycle.”
Added Gagnier, “The business has now reached another critical point in its history and if Algoma is to survive long-term, it must become a more efficient manufacturer with a more flexible cost structure. Our restructuring plan is the only plan that sets up Algoma for long-term success by providing Algoma with over C$500 million of new capital, reducing debt by C$1.5 billion and benefiting Algoma’s various stakeholder groups, including its employees and retirees. Now is the one and only chance to set up Algoma for long-term success and we urge all stakeholders to give our restructuring plan the careful consideration it deserves.”
Additional information about our restructuring plan can be found at algomasecuredcreditors.ca.