Essar Steel Algoma Gets Capital Infusion

Essar Steel Algoma has received permission from the Ontario Superior Court of Justice for a recapitalization and refinancing plan that was approved by shareholders in a September 10, 2014 meeting.

The Plan of Arrangement allows for a capital infusion of up to $100 million from the Essar Global Fund Ltd to complete scheduled capital improvements and to build raw material inventory for the winter season.

Kalyan Ghosh, Chief Executive Officer of Essar Steel Algoma commented on the Plan’s approval, “This Plan provides for a comprehensive capital infusion, a substantial deleveraging of our balance sheet and the refinancing of all of Algoma’s senior secured debt. In recent months, we have been able to capitalize on the favourable market environment, building on sustainable operational improvements that positioned the Company well for the future. In July and August alone we generated EBITDA of CDN$22 million and CDN$30 million, respectively. Our order book is full and we are currently taking orders for November.”