Mineral Park committee objects to four-month exclusivity extension

By Caroline Salls

Pittsburgh, Jan. 6 – Mineral Park Inc.’s official committee of unsecured creditors objected to the company’s proposed exclusivity extension, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The creditor group requested that any exclusivity periods granted end, at the latest, on the day immediately following the court’s approval of a sale of substantially all of Mineral Park’s assets.

The committee said it recognizes the company’s sale-related and other accomplishments in its Chapter 11 case, “but other, more significant facts and circumstances make clear that cause does not exist to extend the exclusivity periods – at least not to the extent requested by the debtors.”

Specifically, the committee said the requested 120-day extension will prejudice the rights of creditors, Mineral Park is not paying all debts as they come due, and the company “cannot demonstrate reasonable prospects for filing a viable plan.”

“Cause does not exist for the debtors to retain exclusive control over the primary administrative processes of these cases for nearly four additional months,” the committee said.

A hearing is scheduled for Jan. 20.

Mineral Park is a subsidiary of Vancouver, B.C.-based copper mining company Mercator Minerals Ltd. The company filed for bankruptcy on Aug. 25 under Chapter 11 case number 14-11996.

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