Former Essar Steel Minnesota approved to hold plan-sponsor auction

By Caroline Salls

Pittsburgh, April 12 – Mesabi Metallics Co. LLC, formerly Essar Steel Minnesota LLC, received court approval to hold an auction on April 26 for parties interested in replacing the company’s Chapter 11 plan sponsor or purchasing its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The company said it received a non-binding indication of interest from Chippewa Capital Partners, LLC under which Chippewa proposed to replace SPL Advisors LLC as plan sponsor.

Mesabi said on April 8 that the Chippewa proposal was under review by the company and its board of directors, and no determination had been made in connection with the proposal.

The company said it was in talks with both potential plan sponsors, and it would hold discussions with any other party that submits a proposal, with the goal of entering into a binding agreement.

The iron ore producer is based in Hibbing, Minn., and is part of India-based Essar Group. The company filed bankruptcy on July 8, 2016 under Chapter 11 case number 16-11626.

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