Big news for Sault Ste. Marie as one of the last obstacles in the effort to have the steel plant released from creditor protection appears on the way to resolution.
Algoma, formerly known as Essar Steel, says an agreement in principle has been reached regarding the port.
An Ontario judge says the asset purchase agreement should be approved and commended the parties on reaching the agreement in principle, noting that the sale transaction will be in the best interests of Algoma and its stakeholders.
Algoma Chief Executive Officer, Kalyan Ghosh, remarked on Thursday's developments as well, saying:
Algoma CEO statement regarding port agreement"Resolution of the port matter was the final hurdle standing between us and a successful sale transaction. This agreement will position Algoma securely as an advanced steel manufacturer with the liquidity and wherewithal to make the investments necessary to secure the next generation of steel makers."
The steel company entered creditor protection back in November of 2015 and just recently reached a deal to pay over $20-million in back taxes to the City of Sault Ste. Marie when the sale is completed.
