Certain North American based affiliates of Essar Steel Ltd (Mumbai) have today filed Chapter 11 and Chapter 15 petitions in Delaware. ESML Holdings Inc. and Essar Steel Minnesota LLC have filed Chapter 11 proceedings in Delaware. The following entities filed Chapter 15 petitions in Delaware: Essar Steel Algoma Inc. USA, Essar Steel Algoma Inc., Cannelton Iron Ore Company, Essar Steel Algoma (Alberta) ULC, Essar Tech Algoma Inc. and Algoma Holdings B.V. The Chapter 15 cases are insolvency proceedings ancillary to primary or “main” insolvency proceedings filed in Canada under the Companies Creditors Arrangement Act (analogous to Chapter 11) in November 2015. Chapter 11 and CCAA cases are plenary or full blown insolvency proceedings, while Chapter 15 proceedings are ancillary proceedings, with limited relief available and usually necessary with respect to assets, liabilities or creditors located in the U.S. Creditors of any of these entities are well advised to understand their rights and obligations upon these recent filings.
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