Ruling handed down on Essar Oppression Case – Sale Process won’t be re-opened

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A Supreme court judge has ruled against the Essar companies in two decisions today.

The first surrounding the Port of Algoma and a second ruling that would not allow Essar Global Funds Inc. to make a bid for Essar Steel Algoma.

Supreme Court Judge Frank Newbould ruled today that Essar Global Fund Ltd. and it’s related division, Essar Capital Ltd. were solely behind a decision for Essar Steel Algoma to lease its old dock to Port of Algoma Inc. Newbould called it “unfair and oppressive” and the entire transaction disregarded the steel plants creditors, employees and retirees. The judge has ordered changes to the lease of the dock between Essar Steel Algoma and Port of Algoma.

In a second decision the judge denied an application from Essar Capital Ltd., to open up the plant’s Sales and Investment Solicitation to other bidders.

The Judge ruled that the process is open but only for such person(s) to reach out to the term lenders and note-holders to propose a transaction that would be accepted and supported.

To read the full ruling and decision click on the links below

Ruling – Part 1 of 2

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Ruling – Part 1 of 2

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