A group of U.S. creditors is pushing ahead with a proposal to acquire the Canadian steelmaking subsidiary of Essar Global, following a court ruling terminating the Indian conglomerate’s right to block a takeover, the Wall Street Journal reported yesterday. The secured creditors, which include New York-based hedge fund GoldenTree Asset Management LP and Bain Capital, proposed in September to acquire Essar Steel Algoma Inc. A legal dispute over Essar Global’s rights to thwart an unwanted takeover threatened to derail the proposed purchase. A ruling on Monday by an Ontario court eliminates a key obstacle to the deal, which calls for creditors to invest up to $425 million and convert $1.3 billion of debt into equity.
