BRIEF-Essar Steel Algoma gets extension to CCAA proceedings, DIP financing facility

Fri Sep 23, 2016 1:38pm EDT
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Sept 23 (Reuters) - Essar Steel Algoma:

* Essar Steel Algoma extends stay of proceedings and debtor-in-possession financing

* Obtained an order extending stay of proceedings under Companies' Creditors Arrangement Act to January 31, 2017

* Majority of its term lenders and senior secured noteholders have reached agreement on a recapitalization proposal for company

* Proposal contemplates an investment of up to US$425 million, a reduction of company's funded debt by approximately US$1.15 billion

* Proposal contemplates reduction in annual cash interest expense by approximately us$125 million

* Term lenders, senior secured noteholders agreement contemplates either restructuring plan or acquisition of substantially all of company's assets Source text for Eikon: Further company coverage: