Magnetation asks for two-month extension of exclusivity periods

By Mark Reccek

Bethlehem, Pa., Aug. 6 – Magnetation LLC requested court approval to extend its exclusive periods for filing and soliciting votes for its Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Minnesota.

The company is requesting an extension of its exclusive filing period through Nov. 1 from Sept. 2 and an extension of the solicitation period through Dec. 31 from Nov. 1.

According to the Wednesday motion, the company is seeking extensions “to avoid the necessity of having to pursue confirmation of a plan of reorganization prematurely and to ensure that their plan of reorganization best addresses the interests of the debtors and their employees, creditors and estates.”

More specifically, extensions will allow the company to negotiate with AK Steel, refine its business model, further implement restructuring initiatives, complete analysis of its contracts and leases and develop support for a reorganization plan, the motion said.

A hearing on the extension request is scheduled for Aug. 19.

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.

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