Skip to main content
Updated:
Original:

Dayton makes Essar Steel 'final offer' to pay back $66M it owes Minnesota

Author:

Governor Mark Dayton has given Essar Steel a week to accept his new terms by which the company will pay back just under $66 million it owes the state.

The state provided the company with a loan in 2008 to fund a taconite plant and steel mill, only for Essar to shelve the steel part of the project and instead focus on a $1.9 billion taconite facility in Nashwauk.

Considering this a breach of the loan agreement, Dayton has been calling on the company to pay it back, and according to the Pioneer Press issued a final ultimatum to it on Wednesday, giving it until Dec. 30 to accept his demands.

He has set out terms for a repayment plan that will see Essar pay $10 million back to the state by March 31, with the first $3.4 million due in the next 45 days.

The remaining $55.9 million, FOX 21 reports, would be repaid in 16 quarterly payments starting on March 31, 2017, giving the company just over a year to free up the money.

In a letter to Essar, the TV station notes, Dayton described the terms as the state's "final offer."

Earlier this month Dayton backtracked on his plans to make the company pay off the debt in full all at once, after Essar paid $20 million it owed to Minnesota vendors, and said it was working with an international bank to find more money they hope to use to repay "all additional outstanding obligations."

Financing the project has proved to be an issue for Essar Steel, part of the India-based Essar Group, though they say the taconite plant is still on track for a mid-2016 opening.

The Mesabi Daily News reports that Dayton's administration has been negotiating with Essar on a repayment plan for months.

Speaking with the newspaper on Wednesday, Essar Steel Minnesota CEO Madhu Vuppuluri said the repayment of the state's money "will be resolved soon, very soon."

Next Up

D'Angelo Russell

With KAT out, Timberwolves can't upset Nets

D'Angelo Russell stepped up but couldn't overcome Brooklyn's firepower.

Everson Griffen Vikings dot com

Everson Griffen confirms he has bipolar disorder

"I’ve been running from it a long time. I’m not ashamed of it anymore.”

Angela Renee Jones, St. Cloud murder suspect

St. Cloud suspect now charged in two local murder cases

Both murders happened within a day of each other in June.

st anthony 3 crop

Twin Cities police ask for help finding missing 16-year-old

Police say all her family and friends have been contacted, and none of them know where she is.

mpd suspect 12.3.21 - 1 - CROP

MPD releases photos of shooting suspect, asks for public's help

The man is wanted in connection with a fatal shooting that happened Wednesday evening.

redmons popcorn colbert 2

Support grows for Redmon's Popcorn after shop's sudden closure

The county also commented on the situation, saying it hopes to help owner Zack Redmon.

prior lake high school

Prior Lake HS investigating another 'racist' video involving student

The principal said the social media video was reported to them this week.

Screen Shot 2021-12-03 at 3.08.27 PM

Walz: Minnesota has secured 1 million rapid, at-home COVID tests for kids

It comes as the delta variant continues to surge in Minnesota, and the omicron variant might follow.

boundary waters

Forest Service limiting permits to BWCAW due to damage, overcrowding

Visitors have been cutting down trees and have been forced to compete for campsites.

police lights

Lockdown update: Armed man threatened to go to Kimball High School

A high school and elementary school near St. Cloud went into lockdown as a precaution.

chaska sewer

People in Chaska are flushing the wrong crap down the toilet

Water and sewer crews in Chaska have had to clean the same pump four times in the past seven days.

Related