1:13 p.m. update: Mike DaPrat, president of USW Local 2251, which represents the majority of workers at the steel mill, said he received the filing around 3 a.m. He said he spoke with company representatives this morning.

1:13 p.m. update:

Mike DaPrat, president of USW Local 2251, which represents the majority of workers at the steel mill, said he received the filing around 3 a.m.

He said he spoke with company representatives this morning.

"The company stated to me a few minutes ago that the wages and benefits will continue," DaPrat told SooToday.

He said the company told him retirees would be contacted individually.

DaPrat said he couldn't comment as to what the CCAA filing will mean for staffing levels or production at the plant.

He said the union had not previously been notified of the company's intent to file under CCAA.

Original story:

Essar Steel Algoma has filed for protection from its creditors amid a serious cash crunch, reports the Globe and Mail.

The Globe reports Essar Steel Algoma has a $25-million interest payment due this week on $300-million in debt that it successfully restructured last year.

This is the third time the local steelmaker has sought protection under the Companies' Creditors Arrangement Act.

The news comes as 100 workers are laid off effective October 2.

The company has stated the layoffs were due to low demand for steel, low steel prices and dumped imports.