Mining Company Bankruptcy Gamesmanship Claims Move Forward

Majority owners of a Utah copper mine who have accused minority investors of blocking its financing efforts so they could buy its assets on the cheap must face claims that they, too, sought to force the company into bankruptcy and acquire it through gamesmanship, a Delaware judge ruled.

Vice Chancellor Joseph R. Slights III, who’s been presiding over the complex case in Delaware Chancery Court since 2017, gave a green light to counterclaims by a group of private equity investors backing affiliates of Skye Mineral Partners LLC and its operating subsidiary, CS Mining LLC.

Slights narrowed the counterclaims, acknowledging that ...