EssarSteel1-230x117 Essar Steel Algoma’s Chief Financial Rajat Marwah suggests in an affidavit filed with the court that other potential restructuring alternatives are being looked at at the same time a process is well underway in seeking a buyer or investor.  The affidavit was filed with the court in support of an application to extend a creditor protection deadline to September 16th—-which has been approved by the court.  Essar Steel Algoma was provided 200-million dollars US in Debtor-In-Possession financing to carry them through the restructuring process.
Meantime the local steelmaker is currently pursuing an assessment appeal regarding its Wallace Terrace property as part of its dispute with the city regarding unpaid taxes.  A successful appeal with MPAC could result in an approximately 50% reduction in its property taxes.  A pre-hearing is scheduled for October but the local steelmaker is looking to expedite the process.  Essar stopped making property tax payments to the City on or about April 20th and has only been paying interest on its taxes.  The City is owed about 14-million dollars.