Magnetation eyes CRO, restructuring support staff from FTI Consulting

By Kali Hays

New York, May 28 – Magnetation LLC is seeking authorization to hire Michael J. Talarico of FTI Consulting, Inc. as its chief restructuring officer, according to a Thursday motion with the U.S. Bankruptcy Court for the District of Minnesota.

As the CRO, Talarico will work in collaboration with Magnetation’s senior management team and board of directors to implement “strategic and tactical options throughout the restructuring process.”

Specifically, Talarico and some support staff also provided by FTI will prepare financial disclosures, analyze contracts and leases and any proposed transactions, provide cash projections, negotiate with potential investors and secured lenders and provide court testimony as required, according to the motion.

For its CRO services, FTI will be paid $125,000 per month for the first two months of the engagement and $110,000 per month thereafter. In addition, support staff will be paid by the hour, with rates ranging from $125 to $975.

A hearing to consider the hiring is set for June 10.

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. It is based in Grand Rapids, Minn., and filed for bankruptcy on May 5 under the Chapter 11 case number is 15-50307.

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