OREANDA-NEWS. Essar Steel Minnesota LLC (ESML) announced today that it has named Matthew Stock as its new CEO, effective immediately. Mr. Stock, who has over 25 years of experience in the metals and mining business, has led efforts to build and complete several iron ore beneficiation and pelletization facilities around the world. His employment by ESML is viewed as a major step in the Company's strategy to complete its 7 million ton per year iron ore mine and pellet plant operation located in northern Minnesota.

Construction on the facility was suspended last year as a result of funding shortfalls. Recent efforts to get the project back on track with new financing were delayed when Cliffs Natural Resources announced that it had entered into an offtake agreement with ArcelorMittal USA LLC in May. The Company then sought to put in place a $50 million bridge financing from SPL Advisors LLC that would give the Company additional time to work out the terms of a comprehensive recapitalization. The proposed financing also would have permitted the Company to immediately pay about $15 million to local contractors in Minnesota who had outstanding amounts for work previously done at the project (including payment in full to about 83% of such vendors). However, when the State of Minnesota Department of Natural Resources (who has leases with ESML covering approximately 40% of its iron ore reserves) balked at the deal late last week, the Company concluded that its best path forward was to utilize chapter 11 of the federal bankruptcy law to facilitate its restructuring and to complete the plant.

Madhu Vuppuluri, who has made significant contributions and served as the Company's CEO since 2007, has taken a new leadership position with Essar Capital.