Steel Mills
Clarification of Chapter 15 Filing at Essar Steel Algoma
Written by Sandy Williams
July 21, 2014
Essar Steel Algoma would like to stress that it is has not filed for bankruptcy or commenced insolvency proceedings in Canada or the U.S. according to a clarification document received by SMU.
After reaching an agreement with its parent company for an infusion of cash, deleveraging of its balance sheet, and refinancing of its senior secured debt, Essar Steel Algoma filed a Plan of Arrangement under the Canadian Business Corporations Act (CBCA). A corresponding filing under Chapter 15 followed on July 17 in the United States. In a note to suppliers on July 18, CEO Kalyan Ghosh reiterated that a Chapter 15 filing is “simply a court proceeding to recognize what is happening in the CBCA process.”
“Specifically, the U.S. Chapter 15 filing is only necessary because Algoma’s funded debt was issued under U.S. laws; therefore the Chapter 15 cases are simply necessary for the U.S. court to recognize and give effect to the Canadian consensual restructuring of the Company’s bond debt in the Canadian proceedings,” wrote Ghosh.
Suppliers were advised that vendors will continue to be paid for all materials and services acquired before or after the filing. The restructuring of financial affairs will not impact the day to day operations of the company or impact supplier or trade obligations during the process.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.