Burro Sand asks for 90-day extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., March 16 – Aequor Mgt LLC, which does business as Burro Sand, is seeking a 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Texas.

Specifically, the company asked the court to extend the exclusive plan filing period through Aug. 3 and the exclusive solicitation period through Oct. 2, 2023.

As background, the debtor’s primary asset is its minority ownership interest in Proterra M&M MGCA Cooperatief UA, a Dutch cooperative.

The ownership percentage is a subject of dispute, with the debtor’s position being that its ownership percentage is subject to upward adjustment, including because other members of the cooperative and its investment manager took actions favorable to only some of the members of the cooperative, in violation of applicable law, and contrary to the debtor’s interests.

The cooperative owns 100% of the equity in Proterra MNM MGCA BV, a Dutch limited company that owns Tacora, which owns and operates an iron ore mine in Newfoundland, Canada.

Prior to the petition date, Tacora was in the process of being sold to Champion, a French company. However, the sale to Champion was not concluded due to the actions of one or more members of the cooperative, the debtor said.

Burro Sand said it believes a sale of Tacora remains likely, but as a minority owner in the cooperative, it doesn’t control the sale process and is instead at the mercy of the majority interests of the cooperative.

When a sale is concluded, all creditors of Burro Sand will be paid in full. But, because the debtor’s influence over the sale process is minimal, the company said it needs an extension of exclusivity in order to permit the sale process to continue and further assess its Chapter 11 exit options.

Tyler, Tex.-based Burro Sand is a frac sand mining and processing plant. The company filed bankruptcy on Jan. 5 under Chapter 11 case number 23-60010.

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