Case filing & court posture: US Magnesium, LLC filed chapter 11 on September 10, 2025 in Delaware. Dkt. 1 Judge Brendan Linehan Shannon presides (Case No. 25-11696).
Liquidity & financing path: The debtor obtained DIP financing from Wells Fargo Bank (senior secured lender). Dkt. 32 Interim order entered September 12, 2025. Dkt. 325 Third Interim Order entered November 26, 2025 (roll-up provisions stricken in earlier proceedings).
Restructuring path & governance: Dkt. 142 The UCC filed a motion to convert to chapter 7 on October 5, 2025, alleging a "DIP-to-own" scheme. Dkt. 297 A Monitor was appointed by stipulated order on November 18, 2025 to oversee case administration.
Asset sale process: The debtor pursued a sale of substantially all assets under 363 process. Dkt. 517 Following auction on January 21, 2026, the Utah Division of Forestry, Fire, and State Lands (FFSL) was selected as successful bidder with a $30 million cash offer.
Current status: Dkt. 583 Sale order approved February 5, 2026. Case proceeding toward closing and wind-down of chapter 11 estate.
