Mineral Park wins court support on $10 million private sale of assets

By Kali Hays

New York, Jan. 20 – Mineral Park, Inc. received court authorization to complete a private sale of its assets and those of its affiliate, Bluefish Energy Corp., to Origin Mining Co., LLC for a purchase amount of $10 million, according to a Tuesday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, assets included in the sale are Mineral Park’s mine and associated equipment, Bluefish’s electricity generator and some environmental reclamation obligations, which will lead Origin to reimburse Mineral Park for about $3.5 million of pledged cash collateral.

Since filing for bankruptcy, Mineral Park said it has been “forced” to place the mine in care and maintenance status and that the proposed sale is the only other option beyond “abandonment of the mine.”

A four-month marketing process for the assets resulted in no other acceptable bids, according to the motion.

Objections from Mineral Park’s official committee of unsecured creditors and its secured creditor Trafigura AG related to the private nature of the sale were overruled.

The sale is expected to close no later than Jan. 23, which is also the date through which Mineral Park will have access to cash collateral.

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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