Stung by a global pricing slump and liquidity problems, Grand Rapids, Minn.-based Magnetation LLC has filed for chapter 11 protection in an effort to restructure its debt and continue operating its iron ore concentration business, the Minneapolis Star Tribune reported today. As part of the bankruptcy restructuring filed on Monday, company officials said that they successfully reached an agreement with creditors for a note due in 2018. That deal will allow the company to restructure its balance sheet and provide the cash needed to continue operations in the long term. The agreement is with holders of senior secured notes that carry an interest rate of 11 percent. The bankruptcy filing was one solution to a problem that had boxed Magnetation into a corner. Plagued by plummeting global iron ore prices that are 60 percent lower than a year ago, Magnetation last month idled one of its plants in Keewatin, Minn.
