Listen Live
HomeNewsEssar restructuring starts layoff wave

Essar restructuring starts layoff wave

Shortly after Essar Steel applied for creditor protection to restructure itself, the City of Sault Ste. Marie said brace for layoffs.  And now layoffs have begun in the construction industry.  Also banks are eliminating or restricting lines of credit.  Essar owes its secured lenders $1.4 billion and unsecured lenders nearly $164-million.  Under restructuring, the secured lenders are paid first and if there`s any money left, it`s shared among the unprotected group.  In the Sault, businesses including City Hall, are owed $40-million and everyone in this group is considered an unsecured lender.

- Advertisment -
- Advertisment -
- Advertisement -

Continue Reading