CitySSM

City council gave the go ahead at last night’s meeting to allow for expenditures of up to 175-thousand dollars in having legal representation as Essar Steel Algoma goes through the Companies’ Creditors Arrangement Act process.  Council was told by its legal staff that it is critical that the city be represented if something is brought forward including a restructuring plan in order to respond if it is not in the city’s best interest.  City Chief Administrative Officer Al Horsman says the 175-thousand dollar amount is the upset limit assuming the worst and suggested that the amount would more likely be less than 50-thousand dollars.  That amount will allow the City to retain the Toronto law firm Aird and Berlis.  Essar Steel Algoma owes the City 14-million dollars in property taxes for a year-and-a-half period and a further million dollars is owed to the PUC for water and sewer.  Essar Steel Algoma was granted a stay order giving them continued court protection from creditors until March 15th and that could be further extended beyond March 15th. Ward one City Councillor Steve Butland spoke of the importance of all the community stakeholders to speak with one voice saying we need to engage the community and we need to engage city council.  He added that last night was the first night that a council meeting has had anything dealing with Essar after 4-months.

———-