Producer sought creditor protection last fall as steel prices cratered
SAULT STE. MARIE, Ont.—Ailing steel producer Essar Steel Algoma, which sought creditor protection last fall, has officially put out the for sale sign.
Following a court order from the Ontario Superior Court of Justice, the company has launched its Sales and Investment Solicitation Process. Essar Steel will look to find a buyer, or a group of investors willing to help the firm restructure or recapitalize.
The Sault Ste. Marie, Ont. steel producer has been owned by the Indian conglomerate Essar Group since 2007.
The company said the sales and investment process is designed to be as flexible as possible, but must consider the complexity of the assets at stake, the interests of the many different stakeholders as well as turbulent market conditions.