This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Essar Steel Algoma Granted Temporary Pension Relief

SAULT STE. MARIE, ON, Jan. 11, 2013 /PRNewswire/ - Essar Steel Algoma Inc. announced today the Ontario Government has granted the Company temporary pension relief in the form of a twelve month deferral of special pension payments effective December 2012 through to November 2013.  The Company will continue to pay ongoing pension service costs for its defined benefit pension plans.

Historically low interest rates have led many of Ontario's defined-benefit pension plans, both public and private, to seek temporary relief measures. As a result of such low rates, Essar Steel Algoma's pension contribution requirements were more than double those made in previous years.  This combined with a decline in steel prices, increased borrowing costs in the wake of the Ontario Court of Appeal decision in Re Indalex, and one-time operational issues led Essar to seek temporary relief to address near-term liquidity needs.

Essar Steel Algoma CEO Kalyan Ghosh commented, "This temporary relief, in combination with continued cost-cutting, operational improvements, improving industry fundamentals and lower raw material costs will enable Essar Steel Algoma to manage its liquidity through this difficult cycle.  In the coming months Essar will meet with its unions, pensioners and other pension stakeholders to explore a medium-term pension funding strategy."

Essar Steel Algoma greatly appreciates the work of David Orazietti, MPP who ensured the success of this important relief measure.  He worked tirelessly with the Ontario Government to secure this vital relief during challenging financial times. This temporary assistance provides the time and financial capacity necessary for Essar to put in place a more comprehensive plan to satisfy its pension obligations for the long-term.

More about Essar Steel Algoma Inc.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,583.57 -71.20 -0.43%
S&P 500 1,978.28 -9.38 -0.47%
NASDAQ 4,800.1060 -12.6020 -0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs