Essar Steel Algoma says it has agreed to a joint bid for its assets by a consortium of bidders formed by New York-based KPS Capital Partners LP and a number of its term lenders.

The value of the bid by KPS and the insolvent steelmaker's pre-petition term lenders was not disclosed.

Essar Steel Algoma, based in Sault Ste. Marie, Ont., filed for creditor protection under the Companies Creditors Arrangement Act in November. Pre-petition liabilities are those that arise prior to a company seeking court protection from creditors.

The company said it was serving a motion Friday with the Ontario Superior Court of Justice asking for the deal to be approved.

The consortium bid includes a cash consideration, a credit bid equivalent to the term loan and the assumption of certain liabilities.

In addition to the court approval process and customary regulatory approvals, closing the transaction is subject to a number of conditions relating to employee and benefit matters, including pension plans and collective agreements, capital projects and environmental matters.