MagCorp, Renco trustee announces $1.29 million creditor distribution

By Caroline Salls

Pittsburgh, July 22 – Magnesium Corp. of America and Renco Metals Inc. Chapter 7 trustee Lee E. Buchwald made a $1.29 million first and final distribution to trade creditors holding administrative expense, priority and general unsecured claims against the companies, according to a Buchwald Capital Advisors LLC news release.

As a result of this distribution, Buchwald said administrative expense and priority claims were paid in full, and holders of general unsecured claims received 27.4% of their claim amounts.

According to the release, Buchwald was appointed Chapter 7 Trustee in 2003, and spent more than a decade prosecuting litigation claims against insiders for the benefit of creditors. In October 2017, Buchwald recovered nearly $215 million from Renco Group, Inc., the parent company of the debtors, then negotiated a global settlement among the two largest creditors, the United States on behalf of the Environmental Protection Agency and the Magnesium debtors’ indenture trustees.

Buchwald Capital said a global settlement has recently been reached, but it will take at least several more months to implement. As a result, the trustee determined that creditors should not wait any longer for their distributions and obtained court approval to make the final distribution at this time.

Buchwald is represented in the debtors' Chapter 7 case by Nicholas F. Kajon, Dean Pourakis and Andreas D. Milliaressis of Stevens & Lee.

Salt Lake City-based MagCorp and Renco filed Chapter 11 bankruptcy on Aug. 2, 2001 in the U.S. Bankruptcy Court for the Southern District of New York. The cases were converted to Chapter 7 on Sept. 24, 2003. The Chapter 7 case number is 01-14312.

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