The American business magazine, Bloomberg.com is reporting that Essar Steel Algoma has filed for Chapter 15 protection in the U.S.
The protection is needed to give the company time to restructure it’s debt. The Sault Ste. Marie based steelmaker started court proceedings earlier this week in Ontario court to reach agreements with it’s unsecured bondholders.
Essar Steel Algoma lists $1 billion in liabilities on its books.
The company blames a variety of circumstances that has led to its financial woes including economic downturns, weather disruptions and price increases in pension costs and raw material.
“This path offers the best means to maximize long-term value while offering certainty of supply for customers and continued security for our employees, retirees, vendors and all other important stakeholders, which were key considerations,” Algoma’s Chief Executive Officer Kalyan Ghosh said Friday in a statement.
To read the full story go to http://www.bloomberg.com/news/2014-07-16/essar-steel-algoma-unsecured-lenders-accept-restructuring.html