- AK Steel (AKS +1.3%) discloses a settlement agreement with Magnetation LLC to terminate the iron ore pellet offtake agreement between the companies and to wind down Magnetation's business.
- AKS owns a 49.9% stake in Magnetation, which had hoped to restructure following its bankruptcy filing in May.
- The settlement requires bankruptcy court approval, with a hearing set for Sept. 27, and AKS says it plans to record a $37.5M charge during the quarter the court approves the agreement.
- In July 2015, AKS said it recorded a $256.3M writedown of its investment in Magnetation and did not expect any additional financial effect.