Essar Steel Algoma Inc. announced today that an agreement in principle has been reached regarding the Port of Algoma’s offer to purchase the steelmaker.
Superior Court Justice Glenn 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. The company manufactures hot and cold rolled steel products including sheet and plate.