Essar Group plans to buy a mining company US Trinity Coal

Essar Group is negotiating the banks consortium to redeem Trinity Coal Corporation. Experts argue that after the completion of a unique operation, Essar will be able to play strategic assets without great obligations and at a significantly reduced price.

In February last year, Trinity Coal leders, headed by Credit Agricole, Ing Capital and NATIXIS, filed an application in accordance with the 11th chapter of bankruptcy against Trinity and her partner Frasure Creek mining after the company stopped paying about $ 120 million by its creditors. According to the laws of the United States, in accordance with Chapter 11, the trustee is authorized to manage the business.

However, since part of the package suggested buying out Essar, the creditors also agreed to make a significant write -off from the principal amount of about 50 percent and agree to the payment of 56 million US dollars. The representative of the Essar Group et said that "our strategic intentions are still strong. We firmly believe that we will contribute to the revival of this company and make a profit in the near future."

Essar currently has strong business interests in North America. Essar is a manufacturer of 7 million tons per year of production in Minnesot in the United States. It also has a metallurgical plant in Canada with a capacity of 4 million tons, which receives raw materials from the Trinity Coal coal mine to the United States. In addition, several local steel plants will be able to serve on Trinity mines.