Essar restructuring on time and on budget – by Elaine Della-Mattia (Sault Star – January 29, 2016)

Kalyan Ghosh said Essar Steel Algoma’s restructuring plan is on a tight timeline and the public will see the process keep moving forward, especially over the next couple of weeks.

The CEO of the financially strapped steelmaker said the timelines set for the restructuring plan by the debtor in possession (DIP) financers and the courts has some strict deadlines and specific milestones that must be met along the way.

Essar Steel Algoma received US $200 million from a syndicate of lenders led by Deutsche Bank to continue its operations throughout the restructuring process.

Ghosh said he expects that loan to be enough money to finance the company until the end of the restructuring program, provided that there is no other major economic impact the steelmaker has to contend with.

The company has agreed to continue paying its pensioners while the company is operating. However, the special payments to top up the employee Pension Plan has been suspended.

The process to begin looking for investors or a new buyer for the mill will begin in the next few days, he said in an interview with The Sault Star.

He said that a buyer or investor must be in place by mid May so that the final deal can be inked by the Aug. 31 deadline.

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