On August 2, 2001 (the "Petition Date"), Magnesium Corporation of America and Renco Metals, Inc. (the "Debtors") filed voluntary petitions in the United States Bankruptcy Court for the Southern District of New York seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code.
On September 24, 2003, the Debtors' chapter 11 cases were converted to chapter 7. On September 24, 2003, Lee E. Buchwald was appointed as chapter 7 Trustee to the Debtors.
This website was created to assist the Trustee in providing access to information for creditors, as well as to solicit and receive comments from such creditors.
Telephonic inquiries can be made at: 888-204-0640
An agreement in principle on the terms of a global settlement was reached in November 2018 with the three major creditors in these cases (the Indenture Trustee Parties, the Federal and Utah State Governments and the Renco Parties), and was disclosed in the Chapter 7 Trustee’s Thirty Third Interim Status Report filed on December 4, 2018 [Docket No. 1118]. Yet, as a result of the unforeseen delays in finalizing the global settlement, the Chapter 7 Trustee determined in his business judgement to bifurcate the global settlement.
On May 7, 2019, the Chapter 7 Trustee filed a motion to approve the settlement relating to Indenture Trustee Claims, Trade Claims, and administrative and priority claims, as memorialized in the Settlement Agreement attached to the Motion as Exhibit A [Docket No. 1132] (the “Settlement Agreement”), deferring all open issues (including the complex environmental issues) for a separate agreement among the Governments, the Renco Parties and the Chapter 7 Trustee. On June 13, 2019, the Court approved the Settlement Agreement in part, authorizing the Chapter 7 Trustee to disburse the following amounts: (a) $774,347.56 to fully satisfy Chapter 11 administrative expenses (other than the claims of the Governments) and prepetition priority claims; and (b) $1,201,024 in full satisfaction of the claims of Trade Creditors [Docket No. 1142]. Notice of the distribution and distribution checks were sent via first-class mail to all Trade Creditors on June 28, 2019. No further distributions will be made to Trade Creditors. If you believe that you are a Trade Creditor and have not yet received a distribution check please contact Andreas Milliaressis of Stevens & Lee, P.C. at 212-537-0406.
On July 16, 2019, the Chapter 7 Trustee filed a motion to approve the global settlement relating to the Government Environmental Claims, Indenture Trustee Claims, Renco Group Claims and issues concerning allocation of available cash between the estates of the two Debtors, as memorialized in the Settlement Agreement attached to the Motion as Exhibit A [Docket No. 1150] (the “Global Settlement Agreement”). A hearing to approve the Global Settlement Agreement is scheduled for August 22, 2019 at 10:00 a.m. Upon approval of the Global Settlement Agreement by the Bankruptcy Court, the Trustee shall make all necessary distributions set forth therein.
The Trustee will update this webpage as developments unfold, so creditors are urged to return periodically.
Chapter 7 Trustee Lee E. Buchwald Makes Final Distribution to Trade Creditors Holding Allowed Chapter 11 Administrative Expense Claims, Pre-Petition Priority Claims and Pre-Petition General Unsecured Claims