Court Rulings go Against Algoma

Justice Frank Newbould has ruled against a further extension of a financing arrangement for Algoma and the establishment of a restructuring committee as requested by the local steelmaker.
In a ruling released on Tuesday, Justice Newbould ruled against what would have been a 4th extension with the original lenders which had the support of the court monitor, chief restructuring advisor and other stakeholders.
Part of his concern involved the failure of all sides to reach a new contract with the Steelworkers despite the assistance of a court appointed mediator.
Justice Newbould isn’t convinced the short extension would provide the time needed to reach a new deal.
The requested extension would provide financing until the end of August with a further extension to the end of September if certain required payments in the agreement are made.
In his ruling regarding a restructuring committee, Justice Newbould says he doesn’t see how adding a further layer of restructuring advisors will do much to solve labour negotiations.