Blackhawk Mining pre-packaged reorganization plan confirmed by court

By Caroline Salls

Pittsburgh, Aug. 30 – Blackhawk Mining LLC’s pre-packaged plan of reorganization was confirmed Thursday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Blackhawk filed bankruptcy to implement an agreement with more than 90% of its lenders and more than 80% of its equityholders on the terms of a financial restructuring. Blackhawk said the transaction will eliminate more than 60% of its total debt and provide more than $150 million of incremental liquidity.

Blackhawk said it entered a restructuring support agreement with the supporting lenders and equityholders and launched a solicitation of a pre-packaged plan of reorganization.

Under the plan, the lenders under Blackhawk’s first-lien and second-lien term loans will receive a combination of debt and equity.

Specifically, on the plan effective date, the company’s $639 million first-lien term loan will be discharged and lenders will receive 71% of reorganized Blackhawk’s equity and a newly issued $375 million first-lien term loan.

The company’s current $318 million second-lien term loan will also be discharged and lenders will receive 29% of the equity.

Holders of general unsecured claims will receive a cash payment.

Holders of existing interests will receive no distribution.

Blackhawk Mining is a Lexington, Ky.-based producer of coal, operating nine active coal mining complexes in West Virginia and Kentucky. The company filed bankruptcy on July 19 under Chapter 11 case number 19-11595.

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