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Lienholders, county push back on ERP Iron Ore bids

Objections to bids made for ERP Iron Ore's assets have been rolling in all week.At least seven objections have been filed since the Minnesota and Indiana assets of bankrupt ERP Iron Ore entered purchase agreements with Illinois-based PPL Acquisit...

Objections to bids made for ERP Iron Ore’s assets have been rolling in all week.
At least seven objections have been filed since the Minnesota and Indiana assets of bankrupt ERP Iron Ore entered purchase agreements with Illinois-based PPL Acquisition Group, LLC for a $6.8 million bid for its Minnesota assets near Grand Rapids and Mexico-based steelmaker Altos Hornos de Mexico for a $15 million bid for ERP’s Reynolds, Ind. pellet plant on Tuesday, Oct. 16.
A sale hearing for the assets is scheduled for Oct. 24, but mechanical lienholders argued in their objection that the $6.8 million price tag was “not sufficient to allow a sale to proceed” as it failed to cover all the existing liens still owed by ERP. In July, ERP owned over $25 million in mechanic’s liens.
Meanwhile, Itasca County argued ERP “has attempted to unilaterally change the terms of the leases between Itasca County and the debtor without the lessor’s (Itasca County’s) consent” and needs “adequate assurances of future performance to any assignment of the leases.”
ERP, which was trying to revive the former Magnetation plant, filed for Chapter 11 bankruptcy in July.

 

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