Essar Global Fund has infused USD 150 million to take out of bankruptcy its US-based entity Trinity Coal Corporation and its 15 affiliates.
Trinity and all its affiliates, like many other coal miners in the US, were forced to seek Chapter 11 protection in February 2013, due to a drastic fall in prices following easy availability of shale gas and stringent environmental norms, said an Essar Group spokesman.
Trinity and its affiliates have coal mines in the US states of Kentucky and West Virginia and supply the fuel to Essar's steel plant at Algoma in Canada.
Trinity will continue operations after resolving more than USD 325 million of claims under bankruptcy plans, which include capital infusion of over USD 150 million by Essar Global Fund, said a statement.
The successful recapitalisation began with conversion of bankruptcy cases to voluntary Chapter 11 cases and appointment of David Stetson as independent chief restructuring officer.
Under terms of the recast concluded on January 31, Trinity Coal has been re-acquired by Essar Group, with effect from February 1, by paying off secured and unsecured creditors, equipment suppliers and others.
Following this, Trinity will not only be a captive supplier of metallurgical coal to Essar's steel plant at Algoma in Canada, but also be one of the suppliers of metallurgical and steam coal in the US market.
"Today marks the successful completion of our financial restructuring and an exciting new beginning for our company and employees," Stetson said.
