Algoma will complete this refinancing and recapitalization transaction through a Plan of Arrangement under the Canada Business Corporations Act. The transaction is subject to, among other things, the negotiation and execution of definitive documentation.
EGFL will provide Algoma with additional liquidity pending completion of the refinancing and recapitalization process. As a consequence, Algoma will continue normal operations during the recapitalization process. The Plan of Arrangement will not affect any employee, pension, retiree or trade obligations of Algoma. The Plan of Arrangement will only affect the unsecured note obligations.
"We are extremely pleased that we have reached a consensual agreement in principle with our significant unsecured noteholders and EGFL that, upon its consummation, will result in a recapitalized business, a refinanced capital structure, and financial flexibility to continue to make capital improvements," said
Further information regarding the details of the Plan of Arrangement and the related voting process will be outlined in the Management Proxy Circular, which will be distributed to unsecured noteholders and posted to Algoma's website.
The Blackstone Group,
This release is not an offer to sell or an offer to buy any securities.
This news release includes forward-looking statements. All statements, other than statements of historical facts, identified by words such as "assumes", "plans", "expects", "believes", "projects", "aims", "estimates", "anticipates" and "will", are for forward-looking statements. The forward-looking statements provided in this news release are based on management's current belief, based on currently available information, as to the outcome and timing of future events.
The transactions noted herein are subject to closing conditions.
ABOUT ESSAR STEEL ALGOMA INC.:
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