Algoma has been granted a further extension as it continues to work towards successfully restructuring and exiting creditor protection which it has been operating under since November of 2015.
Superior Court Justice Glenn A. Hainey has approved an extension up to the end of July which will keep in place a financing arrangement that has allowed the local steelmaker to continue to operate while it restructures.
Court Monitor Ernst and Young indicates in its 42nd report that the extension will provide stability and will allow more time for negotiations between the consenting Creditors and Steelworker Locals 22-51 and 27-24.
Negotiations resumed on February 12th and the Court Monitor indicates that there is an agreement with the Steelworker Unions on non-monetary issues and that the parties have commenced bargaining on monetary issues.
The report also says that between February 1st and March 15th, Algoma repaid 22-million dollars US against what it owes its lenders reducing the Debtor in Possession balance to approximately 136-Million dollars US.