Russian Investment In Kentucky Aluminum Mill Raises Questions For Some Congress Members
Democratic members of Congress are calling on the Trump administration to review a Russian company's investment in an aluminum mill in eastern Kentucky.
So I started to look into this… and layer by layer it is a f’ing hilarious story (in the most corrupt Republican traitor cronyism possible)
Russian aluminum giant Rusal spent most of last year under US sanctions. But in January Trump and Mnuchin decides to lift sanctions on Russian Oligarch Oleg Derapaska… (go figure) and by sheer coincidence, now Rusal's pumping $200 million into a new project in Kentucky
The plant has also received $15 million in direct investment from the state of Kentucky. Gov. Matt Bevin cut a deal to attract Braidy to the state with that public money and additional tax incentives totaling more than $10 million.
(because Republicans know how to pick winners, right)
Located in Ashland county Kentucky the plant is right at the corner of West Virginia and Ohio…
(hmm I wonder what the voting base is like? do you think they’ll support this? Do you think they will be so grateful they won’t care about the details?… or that they may lose money big time?)
BTW — This is the same Derapaska who is featured more than a dozen times in the Mueller Report
But correspondence cited in the report between Manafort and his associates strongly suggests at least the associates believed Deripaska was receiving their information. Mueller also says Manafort himself met with one of Deripaska’s representatives, Georgy Oganov, in January 2017. Oganov was part of Deripaska inner circle
But no worries — Mnuchin claims Derapaska has agreed to cut back to only a 44% stake…
(it’s just like when Trump claims he no longer has any influence in the Trump Company)
Just like that
the rest of the joint venture will be owned by Braidy Industries — a startup company … founded by a friend of Matt Bevin with a very stellar, cellar record
Bevin 'unbelievably confident' in state-funded Braidy Industries CEO with mixed record
But federal corporate filings, court papers and press accounts of Craig T. Bouchard's past ventures show frequent predictions of spectacular success followed by financial problems and notable failures.
...Some of Bouchard's rapid-fire deals left his companies mired in debt and swimming in red ink, no matter how much revenue they made. In some instances, companies foundered after he left.
...His biggest claim to fame – a complex hostile takeover of a steelmaker – struggled financially, and a subsequent attempt to shore it up by buying a massive steel mill crumbled, spawning a lawsuit and hard feelings.
...Bouchard, offered ArcelorMittal USA about $1.3 billion for its Sparrows Point mill near Baltimore. — "It is one of the great steel transactions of this decade in my opinion," Bouchard told Wall Street analysts in August 2007.
But the deal collapsed a few months later, and Russian giant OAO Severstal scooped up Sparrows Point for just $810 million as the Great Recession took hold
So fear not… Bouchard may be boastful incompetent dealmaker… BUT he knows how to get Russian bailouts!
Russia's Rusal was sanctioned by the US. Now it's investing $200 million in a Kentucky mill (CNN Business-London)
Rusal, the largest producer of aluminum outside China, will help fund and supply a low-carbon aluminum rolling mill under construction in the eastern part of the state
The investment comes after the US Treasury Department in January lifted sanctions on Rusal, En+ Group and another firm with links to Russian oligarch Oleg Deripaska.
The agency said that the companies had undergone significant restructuring to dilute Deripaska's control. Deripaska, who has close ties to Russian President Vladimir Putin, was targeted by US sanctions a year ago as part of a wider effort by the Trump administration to punish the Kremlin over interference in the 2016 election.
Rusal is investing in the Kentucky mill despite US tariffs on foreign aluminum and steel that were imposed by the Trump administration in March 2018.
So No word on whether Elaine Chao’s family has a seat on the board… but hey, it’s not like they’re partnering with a Kremlin oligarch to make military equipment… right?
Braidy Industries promises 600 high-paying jobs for workers who would churn out aluminum sheet used in cars, planes and military equipment
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but wait, there’s more!
Braidy Industries looks to sell $400 million in new stock to finance eastern Kentucky aluminum mill
Braidy Industries Inc., the company building an aluminum mill in Ashland with the help of Kentucky taxpayers, hasn't raised anything close to the $1.68 billion needed to complete construction of the plant, and it’s seeking new investors to help fill the gap.
The company is looking to raise $400 million over the next six weeks in a new round of stock sales -- a necessary step so it can borrow the remaining $1 billion or more needed to complete the project, according to documents the company filed with U.S. Securities & Exchange Commission on Wednesday.
So here’s the fun bit… take a look at the details of the SEC filing (btw — the steel mill is called “Braidy Atlas Mill”
Offering Statement for Braidy Industries, Inc.
- 7. Braidy Industries currently own 100% of Braidy Atlas, which will be building a greenfield aluminum mill in Ashland, Kentucky.
- 9. While Braidy Industries currently anticipates a 2020 commencement of operations for the Braidy Atlas mill,construction and other delays may result in it not being completed in this time frame, within budget or at all.
- 10. The potential financing for the Braidy Atlas mill is not committed.
- 11. While Deutsche Bank has been retained to serve as lead credit advisor for the debt portion of the mill financing,Braidy Atlas currently has no commitments or arrangements with Deutsche Bank or any other party to extend credit to finance the construction of the Braidy Atlas mill.
- 12. Braidy Atlas has recently submitted an application to the Department of Energy to obtain up to $1 billion of low-cost debt financing under the Department’s Advanced Technologies Vehicle Manufacturing (“ATVM”) Program.
- 13. Braidy Industries anticipates that it will need to raise at least $400-500 million in equity capital before Braidy Atlas can raise sufficient debt financing for Braidy Atlas to fund construction of the mill (and reflect a ratio of debt-to-equity that Braidy Industries believes Braidy Atlas’ lenders would expect.) If Braidy Industries does not raise sufficient amount of equity capital at the Braidy Industries level, it will need to sell a minority interest in Braidy Atlas to a third party,
- 16. None of the prospective customers who have indicated a desire to purchase aluminum from Braidy Atlas are contractually committed to do so.
- 19. Braidy Industries does not have a meaningful operating history on which to judge its prospects. BraidyIndustries was formed as a holding company in March 2017