July 20, 2016
 
KPS Withdraws Bid for Essar Steel Algoma

Investment group KPS Capital Partners has withdrawn from the bid for the troubled Essar Steel Algoma mill. Certain of Algoma’s term lenders, who had been part of a consortium with KPS, will pursue the bid for the Canadian steelmaker independently.

The Sault Ste. Marie-based company has been seeking new ownership since February, when a Sale and Investment Solicitation Process was launched. The company filed for protection under Canada’s Companies’ Creditors Arrangement Act in 2015.

“While it is unfortunate that KPS has withdrawn from the consortium, I am pleased that the term lenders remain committed to closing the transaction,” says Essar Steel Algoma CEO Kalyan Ghosh. “Algoma will seek to work with its stakeholders to achieve the optimal outcome for the future of Algoma, its employees, pensioners and the customers we serve.”

"The USW understands KPS could have brought a lot to the table," says Marty Warren, USW District 6 director. "But what they bring comes at a very steep price for the workers. It is hard for a local union to recommend to its members that they pay such a high price when there are other serious bidders out there who appear to be offering materially better terms."

"We are opposed to the SISP process and the way it has been handled to date," says Lisa Dale, president of USW Local 2724 at Algoma.


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Thursday, October 19, 2017