Essar Pays Bills In Minnesota


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.



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