Faced with the state of Minnesota pulling it’s loan if Essar didn’t cough up the money owed to creditors, the sister company to Essar Steel Algoma paid $20 million Friday, two days after the Wednesday deadline set by Governor Mark Dayton.
Essar Minnesota is said to be seeking more capital as it builds a $1.9 billion taconite production facility in that state. “Essar had paid, in full, $20 million in outstanding obligations to its vendors,” said a spokesperson for the Governor’s office Friday.
Meanwhile, it’s Canadian plant, the second largest steel maker in Canada, Essar Steel Algoma is still on the hook for close to $40 million to local contractors and service providers in Sault Ste. Marie. $14 million owed to the City for unpaid taxes. Essar Algoma entered creditor protection with over $1.6 billion in debt.