Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Essar Steel Minnesota Chapter 11 Petition Filed

Privately-held Essar Steel Minnesota (f/k/a Minnesota Steel Industries) and ESML Holdings filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-11626 (ESML Holdings). The Company, which produces iron ore, is represented by Jeffrey M. Schlerf of Fox Rothschild. Six affiliated Debtors previously filed Chapter 15 petitions, and Essar Steel Algoma is operating under the protection of the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. According to documents filed with the Court ESML Holdings owns 100% of the equity of Essar Steel Minnesota. As widely reported, this bankruptcy filing was initiated shortly after Minnesota Governor Mark Dayton announced that he would not extend a deadline to terminate the Company's state mineral leases that had granted access to the iron ore at a proposed mine site outside Nashwauk, MN. Dayton explains, "This morning I instructed the Minnesota Department of Natural Resources to terminate Essar Steel Minnesota's lease agreements with the state. The company has been told for the past nine months that the state would not extend those leases beyond July 1, 2016, unless it paid the full amounts it owed to Minnesota contractors and showed that it had the ability to carry its current construction project through to completion. The company has not done so, and has provided no reliable assurances that it will be able to do so in the foreseeable future." Essar Steel Minnesota's Chapter 11 petition indicates total assets of $1 to 10 billion.

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