Algoma workers need to take a 10% wage cut........

http://www.saultstar.com/2017/03/15/unions-can-talk-to-members-judge

Unions can talk to members: judge

By Brian Kelly, Sault Star

Wednesday, March 15, 2017 4:55:15 EDT PM

Essar Steel Algoma

Mike Da Prat has the clarification he wanted.

Justice Frank Newbould, in an order released Tuesday, confirmed negotiating committees for United Steelworkers Locals 2251 and 2724 can update their members during mediated talks with Essar Steel Algoma in Toronto next week.

A consensual court endorsement released March 8 made the same point – union brass could be in touch with members......

Essar Steel Algoma wants workers to take a 10 per cent wage cut.

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The lenders want to purchase Algoma.....wage cut or war?

https://www.wsj.com/articles/essar-steel-algoma-creditors-to-move-ahead-with-takeover-following-court-ruling-1488928469

By JACQLttE MCNISH * 0 COMMENTS
A group of U.S, creditors is pushing ahead with a proposal to acquire the Canadian steelmaking subsidiary of Essar Global, people familiar'with the matter ; aid. following a court ruling terminating the Indian conglomerate's right to block a takeover. The secured creditors, which include Xew York-based hedge fund GoldenTree Asset Management LP and Bain Capital. proposed in September to acquire Essar Steel Algoma Inc.

A legal dispute over Essar Global’s rights to thwart an unwanted takeover threatened to
derail the proposed purchase. A ruling Monday by an Ontario court eliminate.- a key
obstacle to the deal, whichcalls for creditors to invest up to $425 million and convert $1,3 billion of debt into equity.

Ontario Superior Court Judge Francis Newbould said in the ruling that Essar Global
struck an ‘‘unfairly prejudicial” deal when critical” port assets belonging to Essar Steel
Algoma were acquired by an affiliate of the parent in 2014. Essar Steel Algoina ships the
bulk of its products through port facilities located near it3 operations in SaultSte. Marie,
Ontario, about 200 miles northwest of Toronto.

The disputed asset sale included an unusual provision that entitled the parent company
to veto a change o f control. Judge Newbould said in his ruling that the veto was “a
material impediment to restructuring" that would leave, the company "at the mercy* of
its Mumbai-based parent. Essar Steel Algoma filed for bankruptcy court protection in
late-2025: Any deal will be subject to court, union and Ontario government approval.

A spokesman for Essar Global didn't respond to a request for comment.

The ruling is the latest reversal for Essar s controlling Ruia family, which purchased Essar Steel Algoma in 2007 as part of an ambitious strategy to build an integrated mining and steel making business in North America. Following the takeover of the Canadian steel unit. Essar acquired the rights to build an iron ore mining project in Minnesota and a coal mine in West Virginia

Both of the U.S. operations are in bankruptcy proceedings, and the Ruias are under
pressure to trim heavy debts at some of the family's India businesses. The Minnesota
subsidiary, which is still under construction, filed a lawsuit in January seeking more than
SI billion in damages for millions of dollars allegedly transferred from the "cash starved"
company to Essar affiliates.