Magnetation files Chapter 11 bankruptcy; has plant in Reynolds

Magnetation LLC on Tuesday announced that it had filed for reorganization under chapter 11 bankruptcy in the Bankruptcy Court for the District of Minnesota.

The company based in Grand Rapids, Minnesota, owns a plant in Reynolds, Indiana where recycled iron ore is made into pellets that are used to produce steel.

Magnetation said it will continue to pay vendors, employee wages, healthcare and other benefits without interruption.

The company also expects its mining and pelletizing operations and customer shipments to continue throughout the restructuring.

The company said a majority of its senior debt holders have agreed to the principal terms of the restructuring plan which is subject to court approval.