After Magnetation bankruptcy filing, Sen. Bakk asks: ‘How can we help?’

Magnetation, an iron ore processing company headquartered in Grand Rapids, said today it has filed for voluntary bankruptcy as part of a deal with its creditors.

The company, hard hit by a drop in iron ore prices, had earlier announced the closing of a plant in Keewatin. The Grand Rapids Review Herald notes that in the Magnetation announcement today, the company says it intends to continue to pay employee wages and provide health care and other benefits at its other facilities.

State Senate Majority Leader Tom Bakk quickly responded with this statement to the bankruptcy filing:

Every legislator dreads hearing an announcement that a large employer in their region is in trouble. The immediate questions that follow are: What can we do to help? Could we have prevented this? In Northern Minnesota we have been asking ourselves these questions all too frequently, as layoff notice after layoff notice – and now a bankruptcy filing – has been handed down.

This bankruptcy filing is yet another moment where we must ask ourselves how we can help. The reality is, our iron ore industry is no longer competitive in a global market. There are many factors causing this, one of which is the cost of energy. It is why I remain supportive of legislation to provide limited energy cost relief for our natural resource industries including iron ore.

You can also learn about all our free newsletter options.

Comments (3)

  1. Submitted by Steve Titterud on 05/06/2015 - 10:08 am.

    Bakk’s TERRIBLE idea to give money to FAILED business models..

    …is amazing, coming from a leader in our legislature.

    Who on earth is he courting here ??

    Even giving money to SUCCESSFUL businesses or industries is questionable. What have we gotten from even these giveaways?

    Let the businesses succeed or fail on their own merits.

  2. Submitted by Tom Anderson on 05/06/2015 - 07:16 pm.

    Agreed!

    “Let the businesses succeed or fail on their own merits.”

    Solar, wind, ethanol, biomass, now we’re talking!

  3. Submitted by Paul Udstrand on 05/07/2015 - 08:35 am.

    Good thing…

    We backed off on all those environmental regulations… wouldn’t want to drive companies out of business. This is how you end up broke with a mucked up environment.

Leave a Reply