Magnetation requests extension of exclusive periods to file, solicit votes on Chapter 11 plan

By Sheri Kasprzak

New York, May 31 – Magnetation, LLC entered a request to extend the exclusive periods to file and solicit votes on its Chapter 11, according to a motion file Tuesday in U.S. Bankruptcy Court for the District of Minnesota.

The company hopes to extend the exclusive periods to July 29 from May 30 to file the plan and to Sept. 27 from July 29 to solicit votes.

“Tangible progress has been made toward the debtors’ goals of restructuring their business and maximizing value for their estates in light of the difficulties posed by the current iron ore and steel markets,” said the motion.

“Most importantly, the debtors have successfully assumed the AK Steel contract after a three-day evidentiary hearing that required a tremendous amount of the debtors’ and their professionals’ resources. The level of diligence and energy that the debtors have brought to these Chapter 11 cases is reflected by, with the exception of the assumption of the AK Steel contract, the almost total absence of contested matters in these Chapter 11 cases. However, given the complexity of the issues faced by the debtors are operating, additional time is necessary to reach consensual and productive resolutions of all outstanding issues. Accordingly, the debtors have identified a period of time, well within the standard time for a further extension of exclusivity in a case of this size, which they believe will allow them to make meaningful progress while still minimizing the time spent in Chapter 11.”

A hearing on the matter is scheduled for June 21.

Magnetation, a joint venture between Magnetation, Inc. and AK Steel Corp., recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. The Grand Rapids, Minn.-based company filed for bankruptcy on May 5, 2015 under Chapter 11 case number 15-50307.

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