Essar Steel Minnesota filed for bankruptcy protection after losing its mineral leases in the Iron Range and ThyssenKrupp AG insists it’s still talking to Tata Steel about a possible purchase of European steel mills.
Essar Steel Minnesota Files for Chapter 11
Essar Steel Minnesota LLC — the U.S. affiliate of India’s shipping, natural resources and power conglomerate Essar Global Group — filed for chapter 11 bankruptcy protection on Friday.
The company’s assets and liabilities are estimated to be worth between $1 billion and $10 billion, according to a court filing in the District of Delaware. The filing was prompted by Minnesota Governor Mark Dayton (D.) giving the order to terminate Essar Steel Minnesota’s lucrative mineral leases on Minnesota’s Iron Range. The company had been told that if it did not repay $66 million in infrastructure costs to the state and also pay its overdue contractor bills that the leases would be terminated.
ThyssenKrupp Says it’s Still in Talks With Tata Steel
Thyssenkrupp AG, Germany’s biggest steelmaker, confirmed on Sunday that it is in talks with India’s Tata Steel about a consolidation of beleaguered European steel mills that are hit by overcapacity, weak demand and cheap imports.
Tata Steel said on Friday it had suspended the process of selling its troubled U.K. arm while it held talks with potential partners, including Thyssenkrupp, about alternative and more sustainable solutions for its entire European business. In addition to its U.K. operations, Tata Steel Europe also owns the former Hoogovens steel plant in the Netherlands which has been mentioned as part of a sale.