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Essar Group bails out Trinity Coal

Monday, February 03, 2014   by: Bob Mihell

The Essar Group has put up $150 million U.S. from its global fund, according to unconfirmed breaking reports in two major India news outlets Feb.3, to get its U.S. coal operations, based in West Virginia and Kentucky, out of Chapter 11 bankruptcy protection.

Trinity Coal Corporation was purchased by Essar Minerals in March 2010 for approximately $600 million U.S. as part of its North American strategic plan.

Trinity provides Essar Steel Algoma, according to  company spokesperson, Brenda Stenta, with between 20 and 25 percent of its metallurgical coal resources.

The coal company was forced into bankruptcy protection in February 2013 by three of its major lenders who were owed over $103 million, according to media reports at the time.

Stenta had said that Trinity Coal Corp. continued to honour its contract obligations during the restructuring process.

Stenta could not be immediately reached this afternoon for comment on the reports Essar has successfully arranged a restructuring plan for its coal operations, that include repaying over $325 million U.S. to creditors.

The Economic Times of Mumbai, India, the headquarters of the Essar multinational, reported Feb. 3, “Trinity will continue operations after resolving more than USD $325 million of claims under bankruptcy plans, which include capital infusion of over USD $150 million by Essar Global Fund.”

Soo Today will continue to update this story.

Comments
17
Note: Comments that appear on the site are not the opinion of SooToday.com. If you see an abusive post, please click the link beside the post to report it.
steelworker 2/3/2014 3:26:43 PM Report

Sounds like they were forced to pay their bills.
Gumby54 2/3/2014 3:32:30 PM Report

Maybe they can dig up a few dollars to help Essar Steel pay all their local and Canadian creditors.
toady 2/3/2014 4:57:30 PM Report

A good sign they are here for a while.
thefly22 2/3/2014 5:05:56 PM Report

Maybe they would open their purse strings here too, if they are forced into bankruptcy by their creditors.
itsme29 2/3/2014 5:07:03 PM Report

a good sign there not as broke as they pretend.. pay your damn bills and put some money back into the infrastructure its ready to fall down from one end to the other!!
iamtc 2/3/2014 5:50:10 PM Report

Trying last ditch effort to save something not worth it in my opinion
lowla 2/3/2014 6:29:09 PM Report

they make sure the companies owe so much to the "parent company" to look unprofitable then pull the plug
shju 2/3/2014 7:11:33 PM Report

I don't get how we at Essar steel were paying so much in costs for coal because raw materials were so expensive but yet the coal company we are buying from isn't making money either? and it just so happens both companies that aren't making money are owned by Essar. Why is everyone else making money on raw materials and steel yet we cant.... I wish I was rich and could manipulate the books.
20081915 2/3/2014 9:01:19 PM Report

Maybe we found one of the many black holes where Essar Steel Sault Ste. Marie money is going too.
itsme29 2/3/2014 9:59:05 PM Report

what money...they don't have any money just ask them to pay a bill...
boilertyme 2/3/2014 10:25:54 PM Report

Smoke'n'mirrors
Wisenheimer 2/4/2014 6:25:17 AM Report

Wisdom from the peanut gallery.
OnTheHill 2/4/2014 9:35:23 AM Report

A wise man once said, never show that you are really rich, or never show that you made a profit. Where do you think the concept of keeping 2 books came from. It's a game. Trouble is, people starve while the "big boys" play their games. Where's Superman when you need him?
THE GODFATHER 2/4/2014 9:35:27 AM Report

Bail out what their own company lol
Jmann! 2/4/2014 9:46:05 AM Report

This being late with the bill thing is getting old... Eventually they pay them right?
I don't work there first of all but I can say for a fact that when my PUC bill comes in, i don't just drop everything in sight, run to the bank and pay it, or online.Sometimes I make them wait until the last day... why? because I can, I'll pay at my convenience until the due deadline. Maybe I need to eat first or buy new socks.
C'mon people, it's economics of how things are today.

Let's be thankful they are here to keep or at least try to make Sault Ste Marie on the map again, profitable with growth and prosperity amongst other things.

It won't get done over night. Think positive.
Let's get rid of the crime... The working class are not the problem, Essar or not.
Gumby54 2/4/2014 10:19:59 AM Report

@Jmann!

Eventually they pay them right? - Sarcasm????

Is it right for your employer for example to say that they will pay you eventually? Every business has employees and creditors to pay. It is absolute arrogance the manner in which this company determines when and if to pay its creiditors. Many have taken a hit and refuse to deal with them or demand cash up front before goods or services are rendered. They promote being a good municipal citizen yet hold businesses and creditors hostage and try to negotiate lower fees for the services already rendered. Akin to you buying and receiving goods from a store and then saying you will give them 80% or they can take you to court. There are many stories of smaller businesses in this town who have suffered at the hands of this multi conglomerate. All is not as it seems. $$ from the business is not put back into keeping it up to date and hopefully it will survive despite that.
lincoln 2/4/2014 11:01:33 AM Report

lets hope they bail us out too!!
Comments
17
Note: Comments that appear on the site are not the opinion of SooToday.com. If you see an abusive post, please click the link beside the post to report it.
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