The U.S. Bankruptcy Court approved Magnetation’s motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including November 5, 2016 and January 7, 2017, respectively.
As previously reported, “The Settlement Agreement contemplates that the Debtors will cease operations by no later than October 14, 2016 and sell their remaining assets and safely and efficiently wind down their bankruptcy estates. While the Debtors’ goal has always been to emerge from chapter 11 as a going concern, the Debtors are cognizant of their fiduciary duty to maximize the value of their estates.”
Court-filed documents continue, “Importantly, the Debtors negotiated for a ‘fiduciary out’ in the Settlement Agreement, which provides that, on or prior to the Effective Date, the Debtors may terminate the Settlement Agreement if the Debtors receive a bonafide proposal for an alternative transaction that provides for a higher or better economic recovery to the Debtors’ estates than the one represented by the Settlement Agreement that the Debtors reasonably believe in good faith can be consummated in accordance with the Bankruptcy Code and other applicable law, and nothing in the Settlement Agreement precludes the Debtors from engaging with any party with respect to an alternative transaction.”
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