Algoma Receives CCAA Protection

On April 23, 2001, Algoma Steel Inc. obtained a court order under the Companies’ Creditors Arrangement Act staying creditors’ claims and approving $50 million debtor in possession financing. The order enables Algoma to carry on business while a restructuring plan is being negotiated.

Algoma is represented by McCarthy Tétrault with a team that comprises James McCartney, Q.C., Daryl McLean, Robert Stephenson (corporate), James Gage (bankruptcy and restructuring), Michael Barrack, Geoff Hall and Sarit Batner (litigation), and Gregory Winfield (pensions). Algoma’s first mortgage noteholders are represented by a team from Torys in Toronto, which includes Tony DeMarinis, Michael Rotsztain and James Feehely (insolvency and restructuring), John Laskin and David Outerbridge (litigation), and Hugh O’Reilly (employment and pensions), and by Chaim Fortgang at Wachtell, Lipton, Rosen & Katz in New York.

Derrick Tay, Mario Forte, Virginie Gauthier and Kevin Morley of Meighen Demers LLP are acting for the lenders, and Susan Rowland of Koskie Minsky is acting for the Superintendent of Financial Services, Ontario. Kenneth Rosenberg of Gowling Lafleur Henderson LLP is acting for United Steelworkers of America and its employees.