ThyssenKrupp AG : ThyssenKrupp may seek compensation for Steel Americas
12/09/2012| 12:02pm US/Eastern
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ThyssenKrupp is considering demanding compensation from its former chief executive and other managers for costly investments in steel plants in Brazil and the United States.
A spokesman for ThyssenKrupp confirmed on Sunday a Der Spiegel magazine report that supervisory board chairman Gerhard Cromme had mandated a law firm to determine whether former Chief Executive Ekkehard Schulz and other former board members had knowingly provided wrong information regarding the investments.
The spokesman said the expert report would find out whether the company could seek compensation.
"But the results are not yet there," he said.
Schulz, who joined the supervisory board after his CEO contract expired in January last year, stepped down as director on December 31 in response to criticism about the investments in Brazil and the United States.
The company last week parted ways with three board members in a major shake-up largely due to the Steel Americas fallout.
In 2011, ThyssenKrupp swung to a 1.8 billion euro net loss for its financial year due to a 2.1 billion euro writedown for Steel Americas.
Analysts forecast another a 1 billion euro loss for the Steel Americas unit when the company releases full-year results on December 11.
The unit's new facilities, which started operation in 2010, have been dogged by cost overruns and start-up delays since they were built in 2007.
(Reporting By Marilyn Gerlach; Additional Reporting by Tom Kaeckenhoff; editing by Jane Baird)
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