Essar Steel Algoma files for Ch. 15 protection

Jul 17, 2014 | 06:32 PM | Michael Cowden

Tags  Essar Steel Algoma, Chapter 15, bankruptcy, steel, iron ore, Cliffs Natural Resources, debt and pension obligations, Michael Cowden

CHICAGO — Essar Steel Algoma Inc. has filed for Chapter 15 bankruptcy court protection as it looks to restructure from what it considers unsustainable debt and pension obligations.

The Sault Ste. Marie, Ontario-based flat-rolled steelmaker, Canada’s second-largest integrated steelmaker, listed liabilities of more than $1.2 billion, according to documents filed July 16 in U.S. Bankruptcy Court in Delaware and the Ontario Superior Court of Justice. The company expects to lose money for the balance of 2014, with "improvements only beginning to take effect in 2015," court documents said.

Essar Steel Algoma blamed its "financial underperformance" on severe winter weather this year, weak steel demand and prices in previous years and high raw material costs, as well as steep interest and pension obligations, according to court documents.....





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