Creditors in Essar Steel Algoma Inc. put forward a restructuring plan on Friday that would inject $425-million (U.S.) of new capital in the troubled steel maker and force out current owner Essar Global Ltd. of India.
Sault Ste. Marie, Ont.-based Essar Algoma, the city’s largest employer, filed for creditor protection in November, 2015. Control of the company has been up for grabs since that filing. Creditors led by distressed debt fund GoldenTree Asset Management LP and private equity fund Bain Capital put forward a recapitalization plan in court on Friday that would see loans swapped for equity, reducing Essar Algoma’s debt by approximately $1.15-billion, which would cut interest costs by $125-million annually.Report Typo/Error
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