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.
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