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Report No. : |
350201 |
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Report Date : |
20.11.2015 |
IDENTIFICATION DETAILS
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Name : |
ESSAR STEEL ALGOMA INC. |
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Registered Office : |
105 West Street, Sault Ste Marie, Ontario P6A 7B4 |
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Country : |
Canada |
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Date of Incorporation : |
1901 |
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Legal Form : |
Corporation – Profit |
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Line of Business : |
Subject is engaged in the production and sale of steel sheet and plate
products. |
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No. of Employee : |
2,839 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Canada |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CANADA ECONOMIC OVERVIEW
As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, and electric power, and a top source of US uranium imports. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the early intervention by the Bank of Canada and the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-14 and plans to balance the budget by 2015 despite the recent drop in oil prices. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela and is the world’s fifth-largest oil producer.
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Source
: CIA |
Company name: ESSAR
STEEL ALGOMA INC.
Headquarters: 105 West Street, Sault
Ste Marie, Ontario P6A 7B4 –
Canada
Telephone: +1
705-945-2351
Fax: +1 705-945-2203
Website: www.algoma.com
Corporate ID#: ON-001738731
State: Ontario
Judicial form: Corporation – Profit
Date incorporated: June
1, 1992
Date founded: 1901
Stock: --
Value: --
Name of manager: Kalyan GHOSH
Business:
ESSAR Steel Algoma Inc. engages in the production and sale of steel sheet
and plate products in Canada.
It offers steel plate products, such as armour plates, floor plates, and
heat treated plates for the construction, mining, manufacturing, shipbuilding,
energy, and military applications; and hot and cold rolled sheet steels in
carbon and HSLA grades primarily for manufacturing applications in the
automotive industry.
The company also provides various heat treated products for abrasion
resistant, ballistic, and other specialty plate applications; and first stage
configured blanks, welded shapes, and profiles.
In addition, it sells various by-products, including furnace coke,
buckwheat coke, braize coke, high sulphur beach iron, kish iron, pellet fines,
and flue dust, as well as BOF pit grissly, scrap, and fine products.
ESSAR Steel Algoma Inc. also sells its products in the United States and
internationally.
The company was formerly known as Algoma Steel Inc. and changed its name
to ESSAR Steel Algoma Inc. in June 2008.
ESSAR Steel Algoma Inc. was founded in 1901 and is headquartered in
Sault Ste. Marie, Canada.
Essar Steel Algoma Inc. is a subsidiary of Algoma Holdings BV.
Staff: 2,839
On October 5, 2015, Essar Steel Algoma the cutting production and laying
off about 100 employees in the face of falling demand. The layoffs are
effective October 5, 2015, and additional cuts might be needed.
Operations & branches:
At above address, we find a
factory, warehouse and office, owned.
The Company maintains sales
offices located in Burlington, ON and
Calgary, AB.
Shareholders:
1st shareholder (+50%):
Algoma Holdings BV
200 Prins Bernhardp 1097 JB Amsterdam Netherlands
2nd shareholder:
Essar Tech Algoma Inc.
666 Burrard Street, Suite 1700 Vancouver, British Columbia V6C2X8 Canada
Management:
Kalyan GHOSH, Chief Executive Officer
He served as the Chief Commercial Officer at Essar Steel Algoma Inc. and
also served as its Acting Chief Executive Officer since November 1, 2012. Mr.
Ghosh began his career with the Essar Group in 2005 at Essar Steel India. While
there, he served as Senior Vice President of Supply Chain Management.
Previously he worked at Tata Steel. He graduated from the
Indian Institute of Technology - Banaras Hindu University.
He holds a post graduate diploma in Management from All India Management
Association and INSEAD.
He attended Wharton Business School, where he became qualified in
Advanced Management.
Pramod Kumar SHUKLA, Chief Operating Officer
Rajat MARWAH, Chief Financial Officer
Directors:
- Jatinder MEHRA
- Kishore MIRCHANDANI
- Naresh KOTHARI
Subsidiaries
And partnership:
Essar Steel Algoma Inc. USA
Essar Tech Algoma, Inc.
Essar Steel Algoma (Alberta) ULC
Cannelton Iron Ore Company
On November 9, 2015, Essar Steel Algoma Inc. announced that it has
secured a USD 200 million debtor-in-possession financing facility from a
syndicate of lenders by Deutsche Bank AG to provide adequate liquidity to
operate while it restructures its debt.
Sales declared for fiscal
year ending March 2015 is in the range of
CAD 1,622,000,000= and a
net loss of CAD 285,000,000=
Banks: Royal Bank of Canada
Legal filings
& complaints:
On November 9,
2015, the Company filed for bankruptcy Chapter 15, with the Ontario Superior
Court of Justice.
File # CV-15-000011169-00CL
The Monitor is Ernst & Young Inc. 222
Bay Street, Toronto ON M5K 1J7 – Canada
Secured debts summary: Several
National Credit Bureaus gave
a BAD credit rating.
According to our credit analysts, during the last 6 months, payments of
imports are currently made with an average of 15+ days beyond terms.
The banks and financial
institutions confirmed late payments due to a low cash and a bad year 2013.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
Last report was filed on
10-13-2015.
The risk is HIGH.
Our opinion:
No credit.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.11 |
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|
1 |
Rs.101.03 |
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Euro |
1 |
Rs.70.71 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.