Aleon Asset Sale to Lenders Opposed by Texas Environmental Unit

Bankrupt Aleon Metals LLC’s proposed sale of its assets to a group of its lenders should be rejected because it includes key environmental permits and rights to a crucial conservation trust that can’t be purchased, a Texas environmental agency said.

Texas law doesn’t allow the bankrupt metal extraction business to sell or transfer its air and waste environmental permits to AM BidCo Holdings LLC without prior approval, the Texas Commission on Environmental Quality said in an objection lodged Tuesday in the US Bankruptcy Court for the Southern District of Texas.

The commission noted that it has issued Aleon several deficiency, ...