Algoma Announces Agreement in Principle Reached

Essar Steel Algoma Inc. (doing business as Algoma) announced today that an agreement in principle has been reached regarding the Port. Justice Hainey stated the Asset Purchase Agreement should be approved and commended the parties on reaching an Agreement in principle, noting that the Sale Transaction will be in the best interests of Algoma and its stakeholders.  Algoma will seek an Approval and Vesting Order once the agreement between GIP and the Consenting Creditors regarding the Port has been documented.

Kalyan Ghosh, CEO of Algoma remarked on today’s developments, “Resolution of the port matter was the final hurdle standing between us and a successful sale transaction.  This agreement will position Algoma securely as an advanced steel manufacturer with the liquidity and wherewithal to make the investments necessary to secure the next generation of steel makers.”

Algoma is based in Sault Ste. Marie, Ontario. As a fully integrated steel producer, the Company manufactures hot and cold rolled steel products including sheet and plate.

Essar Steel Algoma Inc. filed for creditor protection under the Company’s Creditors Arrangement Act on November 9, 2015. Relevant documents can be found on the Monitor’s website at www.ey.com/ca/essaralgoma and on the Prime Clerk website at http://cases.primeclerk.com/EssarSteel. While the company is officially doing business as Algoma, the company remains Essar Steel Algoma Inc. for legal and financial purposes for the duration of the restructuring process.

SOURCE Essar Steel Algoma Inc.