Essar Group can’t buy Essar Algoma Judge Rules

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Essar Steel Algoma will no longer be controlled by the Ruia brothers according to a court ruling today reports the Globe&Mail.

The Essar Group headed by the Ruia brothers of India bought the failing steel plant in 2007 for $1.8 billion.  Essar Steel Algoma Inc. fell under creditor protection last November owing millions to local businesses and mounting tax debt to the City. In total, the steel maker holds $1.3 billion of long-term debt when it filed for creditor protection in November 2015.

Ontario Superior Court Justice Frank Newbould ruled this week that the Essar Group has been ruled out as a potential buyer. Something the largest union, USW (United Steel Workers) Local 2251 was petitioning for. Newbould ruled that the bidder “lacked the financial ability to consummate the proposed transaction.” The Essar Group has a total debt of $15 Billion U.S.

to read the full story go to http://www.theglobeandmail.com

 

 

4 COMMENTS

  1. Canadian Court is Right in Preventing Essar parent repeated corporate tactic … Buying a company and the borrowing to the maximum, not paying Money Owed, Bankruptcy…. And “Getting Same Subsidiary Back .. ” With Debt and Lenders.. Extinguished” !

    The starting the Same Cycle again… Putting Fresh Loans in GLOBAL’s Pockets !

  2. Canadian Court is Right in Preventing Essar parent repeated corporate tactic … Buying a company and the borrowing to the maximum, not paying Money Owed, Bankruptcy…. And “Getting Same Subsidiary Back .. ” With Debt and Lenders.. Extinguished” !

    The starting the Same Cycle agin… Putting Fresh Loans in GLOBAL’s Pockets !

Comments are closed.