SSG Advises US Magnesium in the Sale of Select Unencumbered Assets to the Utah Division of Forestry, Fire, and State Lands

SSG Capital Advisors, LLC (“SSG”) served as the investment banker to US Magnesium LLC (“US Magnesium” or the “Company”) in the sale of select unencumbered assets to the Utah Division of Forestry, Fire, and State Lands (“FFSL”). The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Delaware. The transaction closed in February 2026.

US Magnesium was the largest producer of primary magnesium in North America for over two decades. The Company also produced battery-grade lithium carbonate, sodium chloride, and other chemical byproducts for customers in various industries.The Company operated a wholly owned facility in Rowley, Utah, where magnesium had been produced using water from the Great Salt Lake since 1972. US Magnesium’s operations spanned 80,000 acres and contained 100 square miles of solar evaporation ponds.

The Company faced unique and market-wide challenges with respect to the production of both magnesium and lithium that impacted liquidity. These challenges included the shutdown of a large customer, catastrophic and unforeseen equipment failures, financial obligations under a consent decree entered into with the U.S. Environmental Protection Agency, and a judgment against the Company related to damages incurred by a former customer. As a result of these challenges and others, US Magnesium filed for relief under Chapter 11 of the United States Bankruptcy Code in September 2025.

SSG was retained in August 2025 to conduct a comprehensive global marketing process and negotiate a Stalking Horse Credit Bid from an insider affiliate/DIP lender. SSG’s marketing process to solicit competing bids produced an additional qualified bid prior to the bid deadline, and an auction was held in January 2026. Leveraging its deep expertise in virtual auction execution, SSG created a dynamic and competitive auction environment that led to multiple rounds of bidding over several days. The final bid of $30 million cash submitted by FFSL was determined to be the highest and best offer for the select unencumbered assets and represented a substantial increase over FFSL’s opening bid. SSG's extensive Chapter 11 transaction experience and ability to create a competitive auction environment allowed the Company to maximize the value of its assets for the benefit of stakeholders.

Other professionals who worked on the transaction include:

Shaun Martin, independent manager of US Magnesium LLC;

Michael Busenkell, Michael Van Gorder, and Margaret M. Manning of Gellert, Seitz, Busenkell & Brown LLC, counsel to US Magnesium LLC;

Ron Mayo, Chief Restructuring Officer of US Magnesium LLC, Marc Pfefferle, Carl J. Landeck, and Noah Barr of Carl Marks Advisory Group LLC, financial advisor to US Magnesium LLC;

Mark E. Freedlander, Frank J. Guadagnino, and Dion W. Hayes of McGuireWoods LLP, counsel to the Stalking Horse Bidder/DIP Lender;

Mark Minuti and Paige N. Topper of Saul Ewing LLP, counsel to the Stalking Horse Bidder/DIP Lender;

Jonathan N. Helfat and Adam C. Silverstein of Otterbourg P.C., counsel to Wells Fargo Bank;

J. Cory Falgowski and Shannon D. Humiston of Burr & Forman LLP, counsel to Wells Fargo Bank;

George B. Hofmann and Grant Coffey of Cohne Kinghorn, P.C., counsel to the Utah Division of Forestry, Fire, and State Lands;

Daniel K. Hogan, and Garvan F. McDaniel of Hogan McDaniel, counsel to the Utah Division of Forestry, Fire, and State Lands;

Todd C. Meyers, Danielle Barav-Johnson, and John J. Ramirez of Eversheds Sutherland LLP, counsel to the Official Committee of Unsecured Creditors;

Justin R. Alberto, Stacy L. Newman, and Michael E. Fitzpatrick of Cole Schotz P.C., counsel to the Official Committee of Unsecured Creditors; and

Adam Rosen, Garo Khachikian, Anthony Rossello, and Nick Twyman of Province, LLC, financial advisor to the Official Committee of Unsecured Creditors.