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Essar Algoma CEO Expects Company to Exit Creditor Protection by Spring
02/28/2017 - Essar Steel Algoma president and chief executive Kalyan Ghosh said he believes his company will exit creditor protection by the end of March, just as its debtor-in-possession financing expires.
“Restructuring is quite a complex process. There are many stakeholders who have to come to a solution,” said Ghosh. “Definitely delay is expensive, but I am quite hopeful and confident that we will have a solution in the next two months which is beneficial to all the parties,” Ghosh told The Salut Star newspaper in Ontario during an interview.
The company has been operating under creditor protection since November 2015, and one of the keys to a successful exit will be to secure to new labor agreements with the United Steelworkers union, which represents about 95% of its payroll.
The company is seeking a 10% wage cut from the union to bring its payroll in line with competitors. Ghosh, however, said he believes the two sides can come to terms.
“I'm quite optimistic that an agreement can be reached which will satisfy both the aims – the business aim and definitely the employees and retirees' aim,” he told the newspaper.
The Salut Star has more on its interview with Ghosh here.
The company has been operating under creditor protection since November 2015, and one of the keys to a successful exit will be to secure to new labor agreements with the United Steelworkers union, which represents about 95% of its payroll.
The company is seeking a 10% wage cut from the union to bring its payroll in line with competitors. Ghosh, however, said he believes the two sides can come to terms.
“I'm quite optimistic that an agreement can be reached which will satisfy both the aims – the business aim and definitely the employees and retirees' aim,” he told the newspaper.
The Salut Star has more on its interview with Ghosh here.
