Essar Steel Algoma Refutes Motion by Essar Global Fund

4

Today Essar Steel Algoma Inc. issued comment on the motion served by Essar Global Fund Limited on January 28th, 2017 regarding Algoma’s restructuring proceedings.

Kalyan Ghosh, Chief Executive Officer, defended Algoma’s restructuring efforts: “We take issue with the continued tactics deployed by Essar Global Fund Limited (EGFL) to circumvent the established Sale and Investment Solicitation Process and to disrupt the Restructuring
Proceedings.”

He went on to say, “On February 15, 2015 Essar Steel Algoma Inc. launched a comprehensive, court-approved Sale and Investment Solicitation Process (SISP) to elicit the optimal restructuring outcome for Algoma. The process provided for the solicitation and thorough vetting of all interested parties to ensure they would have the wherewithal to see a transaction through to successful completion. Among others, Essar Global Fund Limited was given equal opportunity to compete in the process; and they did not advance.

“The SISP has produced a committed bidder who is in the advanced stages of stakeholder
negotiations. The Recapitalization Proposal that they have tabled aligns with Algoma’s
targeted restructuring objective to emerge a stronger, more sustainable advanced steel
manufacturer with substantially less debt and a capital infusion to invest in the company’s
competitive position. We have reached a critical juncture in the Process and it is in the best
interest of the business, our customers, suppliers and employees that we come to a timely
resolution. It is critical that all parties engage in focused, meaningful discussions to ensure the optimal outcome for all stakeholders.”

In conclusion Mr. Ghosh added, “This attempt by EGFL to disrupt the Process at this late stage can only be viewed as opportunistic. EGFL’s actions are detrimental to the interests of the company and its stakeholders and the company intends to defend the integrity of the Process through to a successful exit from CCAA as a strong, sustainable going concern.”

4 COMMENTS

  1. Ghosh.

    How much of the $3.5M went into your pocket?

    How many of the other 22 are helping you make decisions now?

    Why is the best option you and your crew can come up with is to short change, and go into the pockets and pensions of the people that actually make the product that you are selling?

  2. Stelco has laid off 29 non-union executives in an effort to cut costs. So Kalyan Ghosh, Chief Executive Officer of Essar why are you not doing the same here.Why are you not taking a cut in your wages along with the rest of your managements.Give back that what was it 3 million that you cried for so your top people wouldn’t leave as this one sided Judge agree too.This whole CCAA is legalized THEFT and all one sided.Essar doesn’t give a rats ass about us pensioners or employees.

  3. Was anyone aware that there was a qualified bidder other than Ontario Steelworks, formed by Essar global that claimed to be worthy (but were rejected)?
    Is this committed bidder also committed to coughing up half a billion $ to get the pension fund back on track after Essar peeled it like a banana? A lot of people are wondering what is going to happen by the March 15 deadline for Essar to trim 22 million from the budget or risk losing future financing.

Comments are closed.