A massive twist.....

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http://finance.yahoo.com/news/essar-steel-algomas-secured-creditors-201000258.html

TORONTO--(BUSINESS WIRE)--

A group comprising a majority of the term loan lenders of Essar Steel Algoma Inc. (“Algoma”) launched a website today, algomasecuredcreditors.ca, to provide vital information to all of Algoma’s stakeholders about the future of the company.

Dan Gagnier, spokesperson for the secured creditors, said, “We all want Algoma to be successful, and having been through four restructurings in its history, the company has not embraced the structural changes or received the additional investment it desperately needs to ensure sustainable operations. It is our plan and our primary interest to help the company emerge from CCAA protection with the best chance of competing across any market cycle.”

Added Gagnier, “The business has now reached another critical point in its history and if Algoma is to survive long-term, it must become a more efficient manufacturer with a more flexible cost structure. Our restructuring plan is the only plan that sets up Algoma for long-term success by providing Algoma with over C$500 million of new capital, reducing debt by C$1.5 billion and benefiting Algoma’s various stakeholder groups, including its employees and retirees. Now is the one and only chance to set up Algoma for long-term success and we urge all stakeholders to give our restructuring plan the careful consideration it deserves.”

Additional information about our restructuring plan can be found at algomasecuredcreditors.ca.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170413006148/en/

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algomasecuredcreditors.ca.

Welcome to the algomasecuredcreditors.ca – a website presented by certain secured creditors of Essar Steel Algoma Inc.

On this website you will find critical information regarding Algoma’s restructuring process, the need for change at Algoma and how the secured creditors’ restructuring plan can solidify the company’s long-term business prospects. The secured creditors’ restructuring plan is the only plan that sets up Algoma for long-term success by providing Algoma with over C$500 million of new capital, reducing debt by C$1.5 billion and benefiting Algoma’s various stakeholder groups, including its employees and retirees. If all stakeholders work together towards a restructured Algoma, we can all contribute to a bright future for the company and the community.

Proposal

Key Benefits of the Secured Creditors Proposal

The secured creditors’ plan massively reduces debt, provides substantial new financing, and delivers enough capital to upgrade operations.

Specifically, the plan:

• Reduces existing debt by C$1.5 billion;
• Provides substantial new financing in excess of C$500 million raised from the secured creditors and other third parties to fund operations and CCAA exit costs;
• Provides for the availability of sufficient liquidity to fund the C$400 million of capital expenditures over the next 5 years that will refurbish the mill and upgrade the equipment;
• Preserves meaningful jobs at the plant and throughout the community;
• Reduces the cost structure of Algoma, improving its financial performance and flexibility;
• Reduces costs via renegotiated and improved raw material supply contracts;
• Assumes the hourly and salaried defined benefit pension plans, meaning that the hourly and salaried retirees continue to receive their current pensions, and provides runway for the financial status of these plans to improve;
• Provides continuance of core medical benefits for all employees and retirees;
• Improves the profit-sharing program, ensuring that when Algoma does well, all employees will receive additional compensation;
• Sets aside funds to address legacy environmental issues as well as ongoing compliance; and
• Ensures customers have the confidence that Algoma’s future is stable, and have the confidence to place their business with Algoma.

The secured creditors are ready to partner with all of the company’s stakeholders, including employees, retirees, customers, and the community, to bring real sustainable change.  We urge the union membership and its leadership teams to show real leadership and return to the bargaining table to deal with the only viable plan for Algoma’s long-term success before it is too late.