Steel producer Essar Steel Algoma Inc. says that it will seek bankruptcy protection as it deals with a continued slump in the price of steel, The Canadian Press reported yesterday. The company has filed requests with Canadian and U.S. courts as it seeks to restructure its long-term debt, and has raised US$200 million from a group of investors led by Deutsche Bank to fund ongoing operations. Essar Steel Algoma is the second-largest steel producer in Canada and the largest employer in Sault Ste. Marie, Ont., with close to 3,000 employees. The company is a subsidiary of India-based global conglomerate Essar Steel. In 2013, Essar Steel Algoma won a battle against organized labour when the Ontario government approved a new rule that allowed it to lower its pension contributions, which the company said had become unsustainable.
