Magnetation seeks approval to extend DIP loan maturity to Sept. 15

By Caroline Salls

Pittsburgh, July 28 – Magnetation LLC asked the U.S. Bankruptcy Court for the District of Minnesota to approve the extension of its debtor-in-possession financing maturity date to Sept. 15, according to a motion filed Thursday.

The DIP facility is scheduled to expire on Aug. 2.

Magnetation said it is working with its pre-bankruptcy and post-bankruptcy lenders and other constituencies to evaluate alternatives to determine the most appropriate and value-maximizing resolution of its Chapter 11 proceedings.

“At this juncture in these Chapter 11 cases, it would be impracticable for the debtors to seek to obtain new financing to refinance the DIP facility in advance of the DIP maturity date,” the company said in the motion.

A hearing is scheduled for Aug. 2.

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.

© 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.