Magnetation committee looks to hire lead counsel, financial adviser

By Caroline Salls

Pittsburgh, June 2 – Magnetation LLC’s official committee of unsecured creditors requested court approval to hire Cooley LLP as its lead counsel and Province, Inc. as its financial adviser, according to motions filed Monday with the U.S. Bankruptcy Court for the District of Minnesota.

If approved, the counsel hiring would be retroactive to May 12 and the financial adviser hiring to May 19.

As lead counsel, Cooley will attend committee meetings, review financial and operational information, analyze and negotiate the company’s budget and terms of its debtor-in-possession financing, analyze the value of Magnetation’s assets, review and investigate liens, investigate transaction alternatives, negotiate potential amendments to the company’s pellet off-take agreement with AK Steel, analyze and negotiate any proposed Chapter 11 plan, confer with case parties, review the company’s statements of financial affairs and business plan, prepare and file court documents and provide the committee with legal advice.

As financial adviser, Province will analyze the company’ business, assets and liabilities, liquidity, prospects and overall financial condition, identify areas that will enhance financial performance, calculate Magnetation’s debt capacity and evaluate alternative capital structures, value the company’s business, prepare comparable data for all transactions, assist the committee in deciding how to react to the company’s proposed restructuring plan, conduct forensic accounting of the company’s books and records, analyze possible litigation recoveries, analyze claims, assist the committee in reviewing financial reports, assist in negotiations and participate in hearings.

The current hourly rates of the Cooley professionals expected to work on the committee’s case range from $300 to $950.

The standard hourly rates for Province’s professionals range from $90 to $650.

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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