Replies to post #1177 on Cleveland Cliffs Inc (CLF)

[inversor86]

Good info SG.

[Democritus_of_Abdera]

Essar Pays Minnesota Vendors...

De DePass of the StarTribune has reported that Essar decided to pay the vendors rather than risk Minnesota demanding repayment of the $66M that is in default because of missed construction deadlines and failure to me the obligation to build a steel mill on the site.

Essar Steel Minnesota paid its delinquent contractor bills Friday, prompting Gov. Mark Dayton to stand down from his threat to immediately call due the company’s $66 million state loan.

In a statement, Dayton’s office said Friday that state officials “confirmed with the company, its vendors, and its CEO, Madhu Vuppuluri, that Essar Steel Minnesota had paid, in full, $20 million in outstanding obligations to its vendors, meeting the Governor’s Oct. 12 demands.”

….. A Dayton spokesman said Friday that Essar Steel told state officials that an international bank is now at the project site in Nashwauk performing due diligence. The bankers’ goal is to provide additional capital to bring current any outstanding obligations to Essar’s vendors by the end of the month, the governor’s office said in a statement. “That additional capital would also help assure the completion of the project, with timely payment of its contractors and vendors moving forward.”

see:
http://www.startribune.com/essar-makes-payment-averting-showdown-with-dayton/360596141/