Cleveland Cliffs Inc (CLF)

[greasemonkeyshoes]

BK(ES) update.......
http://www.hibbingmn.com/news/local/bankruptcy-judge-allows-certain-inquiries-into-cliffs-by-essar/article_31a3496a-8131-11e6-b1e5-5f34566cb329.html
Highlights:
Essar Steel Minnesota is getting its chance to investigate Cliffs Natural Resources, but not to the extent it requested.

A written order submitted Thursday grants Essar and its parent company, ESML Holdings, an investigation into Cliffs’ alleged interactions with Essar’s lenders. The order, penned by Chief U.S. Bankruptcy Judge Brendan Shannon, also grants an inquiry into Cliffs’ direct communication with the state of Minnesota regarding mineral leases.

Shannon is scheduled to hear arguments Oct. 20 over the state Department of Natural Resource’s request to remove state-owned mineral leases from Essar’s claimed assets, potentially paving the way to transfer them to Cliffs.

“At bottom, it appears to the Court that the 2004 motion reflects the Debtor’s vague hope and suspicion that the root of their troubles may lie in a competitor,” Shannon wrote. “Little, if anything, in the moving papers support this connection.”

Cliffs, on the heels of a 10-year pellet contract agreement with ArcelorMittal, invested $65 million into its United Taconite operations and reopened the Eveleth and Forbes plant. That agreement was at the center of Essar’s original claims against the company, but not part of the court-approved inquiry.

ps- my favorite: “..it appears to the Court.... motion reflects the Debtor’s vague hope and suspicion that the root of their troubles may lie in a competitor,” Shannon wrote. “Little, if anything, in the moving papers support this connection.”