Magnetation wins approval to extend DIP loan maturity date to Sept. 15

By Caroline Salls

Pittsburgh, Aug. 3 – Magnetation LLC received court approval to extend the maturity date of its debtor-in-possession financing to Sept. 15, according to an order filed Aug. 2 with the U.S. Bankruptcy Court for the District of Minnesota.

The DIP facility was previously 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.

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.

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