Mineral Park Chapter 11 case dismissed due to insufficient assets

By Caroline Salls

Pittsburgh, Dec. 21 – Mineral Park Inc.’s Chapter 11 bankruptcy case was dismissed Monday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Mineral Park closed on the sale of substantially all of its operating assets to Origin Mining Co., LLC on Jan. 20, 2015 and has since been winding up its affairs, liquidating its remaining assets and addressing various claim-related and intercreditor disputes.

Because the proceeds of the sale were insufficient to repay various secured claims that were asserted against the estates, the company said months of litigation ensued following the closing among the Mineral Park debtors and the secured creditor constituents, which ultimately led to settlements that allowed a consensual distribution of the proceeds of the sale, totaling about $13 million.

Mineral Park said it does not have sufficient assets to satisfy various administrative expenses and priority claims and cannot confirm a Chapter 11 plan.

Mineral Park is a subsidiary of Vancouver, B.C.-based copper mining company Mercator Minerals Ltd. The company filed for bankruptcy on Aug. 25, 2014 under Chapter 11 case number 14-11996.

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