Magnetation committee OK’d to hire joint counsel, financial adviser

By Kali Hays

New York, June 9 – Magnetation LLC’s official committee of unsecured creditors obtained approval to hire Cooley LLP and Foley & Mansfield PLLP as joint counsel and Province, Inc. as its financial adviser, according to separate Tuesday orders from the U.S. Bankruptcy Court for the District of Minnesota.

The hirings of Cooley and Foley are retroactive to May 12 and May 20, respectively, and that of Province to May 19.

As previously reported, Cooley will act as the committee’s lead counsel and attend committee meetings, review financial and operational information, analyze and negotiate the company’s budget and terms of its debtor-in-possession financing, analyze the value of Magnetation’s assets, review and investigate liens, investigate transaction alternatives, negotiate potential amendments to the company’s pellet off-take agreement with AK Steel, analyze and negotiate any proposed Chapter 11 plan, confer with case parties, review the company’s statements of financial affairs and business plan, prepare and file court documents and provide the committee with legal advice.

Foley will investigate the business conduct and overall financial condition of Magnetation, assist in formulation of any plan and advise and represent the committee in its negotiations with the debtors and during court proceedings as necessary.

As financial adviser, Province will analyze the company’ business, assets and liabilities, liquidity, prospects and overall financial condition, identify areas that will enhance financial performance, calculate Magnetation’s debt capacity and evaluate alternative capital structures, value the company’s business, prepare comparable data for all transactions, assist the committee in deciding how to react to the company’s proposed restructuring plan, conduct forensic accounting of the company’s books and records, analyze possible litigation recoveries, analyze claims, assist the committee in reviewing financial reports, assist in negotiations and participate in hearings.

The current hourly rates of the Cooley professionals expected to work on the committee’s case range from $300 to $950, and hourly rates for Foley partners and associates range from $200 to $300.

The standard hourly rates for Province’s professionals range from $90 to $650.

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 Chapter 11 case number 15-50307.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.