We need Tin Man and Babjak1 to look into the identify this new entity.......

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http://www.saultstar.com/2017/04/12/union-to-help-entity-advance-bid-for-essar

Essar Steel Algoma, Sault Ste. Marie

The United Steelworkers Local 2251 is aligning itself with a newly formed American company that wants to purchase Sault Ste. Marie's steel mill.

The unknown 'entity' that United Steelworkers Local 2251 has vowed to support, is called Maga Steel Corporation, the Sault Star has learned.

Maga Steel Corporation's chief executive officer is Thomas M. Clarke,

and the company name is believed to be a new entity established for a potential bid for Essar Steel Algoma.

Clarke, founder, president and CEO of Kissito Healthcare International, is also considered an American environmentalist based in West Virginia and known for his outside-the-box projects in Roanoke County that have resulted in expanding his interests and business opportunities in the natural resources sector, the resurgence of coal mines and into the raw materials sector of the steel industry.

News stories around the globe show Clarke's involvement in a number of projects in mining acquisitions including building a Roanoke-based Southern Coal Corp. an environmental compliance program and following that, creating a coal company called ERP Compliant Fuels.

ERP Compliant Fuels purchased a bankrupt Patriot's Federal mining complex in northern West Virginia in 2015, taking on more than $400 million of liabilities with a plan to convert the coal business into a more environmentally friendly industry.

ERP Compliant Fuels has grown itself through various bankruptcy acquisitions and is now considered one of the largest producers of metallurgical coal in North America. Over the past several years Clarke has moved the company towards acquiring mines that produce metallurgical coal used in steel production, including recent acquisitions of three mines in British Columbia.

ERP has also made inroads by offsetting its emissions through tree planting projects that reduce excess atmospheric carbon dioxide, thus creating carbon offsets.

ERP also owns a 13,500 acre forest in Belize and partnered to plant 36 million tress along the Mississippi River flood plain.

Clarke is also the head of the Virginia Conservation Legacy Fund, a nonprofit organization seeking sustainable approaches to natural resource use. The organization's website says it is responsible for conserving over 30,000 acres of land, including Virginia's Natural Bridge.

More recently, Clarke and ERP Compliant have turned their minds to steel operations.

It acquired Cliffs Natural Resources Oak Grove Mine in Alabama and Pinnacle Mine in West Virginia by assuming $268 million of liabilities and later the Maple Mine in West Virginia and coke plant in Alabama through bankruptcy deals.

Clarke and ERP Compliant were also bidders during the Stelco Inc. CCAA restructuring process. At that time, Clarke told The Globe and Mail that he saw potential with ERP selling the steelmaker coal at cost in order to help the steelmaker become more cost competitive in the market.

Clarke has a reputation of building consensus with unionized workers, including the United Steelworkers, in past deals.

And now he's inked a deal with Local 2251 and it appears he is interested in adding Essar Steel Algoma to its list of acquisitions.

The Sault Star has obtained a document titled Support Agreement between MAGA Steel Corporation and USW Local 2251.

The document, undated, but signed by Clarke and union executive, recommends certain terms for the settlement of a new collective bargaining agreement between what is believed to be a newly-formed company, Maga and the union.

The new collective agreement is conditional upon Local 2251's ratification of the support agreement and ratification of the final form of the new collective agreement, the document reads.

Maga agrees that on closing of “the transaction,” it becomes the successor employer to Essar Steel Algoma Inc. within the meaning of the Ontario Labour Relations Act, the document reads.

The document sets out the duration of a new collective agreement and terms both prior to and after closing of the transaction.

The term runs from Aug. 1, 2016 to July 31, 2018. Anything prior to Aug. 1 shall remain status quo from the Aug. 1 2013 agreement.

Starting Aug. 1, 2018 some amendments are made to the collective agreement.

The document also states that commitments in the prior collective will be maintained that include cost of loving allowances, retiree 50% reimbursement of glasses and hearing aides, pension plan indexing and others.

Maga Steel also agrees to pay all fees and expenses incurred by Local 2251 in respect to the restructuring proceedings commenced by Essar Steel Algoma upon closing of the transaction.

Local 2251 will “support, advance and take all actions necessary to implement the transaction set out in the term sheet” and bring a motion before the CCAA Court to approve the transaction.

To date, the Ernst and Young online files of the Essar Steel Algoma CCAA proceedings do not have any motions listed requesting that Maga Steel Corporation be considered in the Sales and Investment Solicitation Process. (SISP).