Essar Steel Algoma finalizes funding deal

Jul 24, 2014 | 08:14 PM | Thorsten Schier

Tags  Essar Steel Algoma, recapitalization, Kalyan Gosh, Essar Global Fund, Canada Business Corporations Act, steel, Thorsten Schier

NEW YORK — Essar Steel Algoma Inc. has finalized the terms of an agreement that would provide the struggling steelmaker with a near-term capital infusion of $100 million.

The Sault Ste. Marie, Ontario-based flat-rolled steelmaker reached the deal with Essar Global Fund Ltd. and holders of more than 70 percent of its 9.875-percent senior unsecured notes.

Essar Steel Algoma will receive the first $25-million tranche of the capital boost within five business days of the agreement being completed, with the proceeds to be used to finalize scheduled capital improvements and a "seasonal raw material build," the company said July 24.....

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