Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

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Essar Steel Algoma Chapter 15 Petition Filed

Ontario, Canada-based Essar Steel Algoma and four affiliated Debtors filed for Chapter 15 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 15-12271. The Company, which manufactures and sells rolled steel products, is represented by Daniel J. DeFranceschi of Richards, Layton & Finger. On November 9, 2015, the Company sought protection under the Companies' Creditors Arrangement Act (CCAA) before the Ontario Superior Court of Justice "in order to strengthen its financial health and solidify its long-term business prospects." Kalyan Ghosh, president and chief executive officer of Essar Steel Algoma, comments, "[W]e have been forced to take action today to ensure the continued success of our business given the record low steel markets, a barrage of imports, and the untimely and wrongful termination of our long-term iron ore supply contract….This process will provide the company with the time and stability to restructure our finances. We expect that Essar Steel Algoma will emerge stronger and better able to compete as an advanced manufacturer." The Company has secured a $200 million debtor-in-possession financing facility from a syndicate of lenders by Deutsche Bank AG to provide adequate liquidity to operate while it restructures its debt. Essar Steel Algoma initiated a previous Chapter 15 filing in July 2014. The current Chapter 15 petition indicates total assets greater than $1 billion.

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