ERP Iron Ore Chapter 7 trustee seeks approval of sale of properties

By Sarah Lizee

Olympia, Wash., May 22 – The trustee overseeing ERP Iron Ore, LLC’s Chapter 7 case is seeking approval of the sale of four ERP properties, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Minnesota.

The properties include plant 1 in Keewatin, Minn., plant 2 in Bovey, Minn., the Jessie load-out in Grand Rapids, Minn., and plant 4 in Grand Rapids, Minn.

Trustee Nauni J. Manty said in her motion that Prairie River Minerals, LLC has offered to purchase plant 1 and the Jessie load-out for $1.75 million.

In addition, Prairie River Minerals has agreed to grant a purchase option for the Jessie load-out to the trustee as owner of plants 2 and 4 upon the sale of the Chapter 7 case.

“This is the highest and best offer the estate has received for the real property,” the trustee said in the motion.

Other interested purchasers may bid on plant 1, but must bid in $100,000 increments. Other interested purchasers may bid on separate parcels or equipment of the debtor’s property, including plants 1, 2 and 4, and the equipment, but they must breakdown the offer for each plant and for the equipment at each plant. If other interested purchasers are bidding on the entire properties, the bids must be in $300,000 increments.

The bid deadline is June 6. Selection of the successful bids and an auction of competing bids will take place on June 10.

A hearing is scheduled for June 19.

ERP is based in Grand Rapids, Minn. An involuntary case against it was converted to a voluntary case on July 17. The Chapter 11 case number is 18-50378.

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