Magnetation LLC, a Minnesota-based mining company that is almost halfway owned by AK Steel, filed for Chapter 11 bankruptcy Wednesday. Before the filing, the company reached a debt restructuring deal with 70 percent of its senior bondholders creditors that are owed a combined $425 million.
The severe plunge in iron ore prices over the last year contributed to Magnetation’s $16 million loss in 2014. As part of the deal, the company must file a reorganization plan within 90 days, and continue to pay suppliers and provide employee benefits.
Magnetation operates iron ore concentrate plants in Keewatin, Bovey and Grand Rapids, Minnesota and an iron ore pellet plant in Reynolds, Indiana.