Mine Reclamation agrees to contract termination, eyes case dismissal

By Caroline Salls

Pittsburgh, July 26 - Mine Reclamation, LLC asked the U.S. Bankruptcy Court for the Central District of California to dismiss its Chapter 11 bankruptcy case, according to a July 26 court filing.

Mine Reclamation said it resolved the disputes with its primary potential creditor, the County Sanitation District No. 2 of Los Angeles, through an agreement to terminate a contract under which the district would have purchased the company's sole asset for use of a landfill.

In turn, Mine Reclamation said it would have acquired the landfill through the exercise of an existing real estate option with current owner Kaiser Eagle Mountain, LLC.

"With the consensual termination of the landfill project sale agreement there is no reason for the debtor to continue to reorganize under the Bankruptcy Code," the motion said.

Mine Reclamation said it will pay all unsecured claims not held by Kaiser Eagle Mountain and Kaiser Ventures LLC in full, as well as all outstanding professional fees and any fees owed to the U.S. Trustee.

The company said it is in talks with several parties regarding alternate uses for the property and it believes that dismissal of the case by Aug. 12 will facilitate a potential transaction.

Mine Reclamation is an Ontario, Calif.-based developer of the Eagle Mountain landfill project. The company filed for Chapter 11 bankruptcy on Oct. 30, 2011 under case number 11-43596.

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