A mining company that is partly owned by West Chester-based AK Steel has filed for Chapter 11 bankruptcy protection.
AK Steel (NYSE: AKS) holds 49.9 percent of Minnesota mining company MagnetationLLC, which made the filing after reaching a restructuring deal with senior bondholders that are owed $425 million, the Wall Street Journal reports.
The privately held joint venture between AK Steel affiliate AK Iron Resources LLC and Magnetation Inc. was founded in 2006 and has fallen victim to the declining demand for steel along with a growing global oversupply. The company uses magnetic separators to recover iron ore concentrate from waste stockpiles from mining operations. The iron ore is then processed into pellets and sold to steelmakers.
