Cloud Peak Energy requests court approval of asset sale procedures

By Caroline Salls

Pittsburgh, May 14 – Cloud Peak Energy Inc. requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Cloud Peak said it is also seeking approval to select one or more parties to act as stalking horse bidder. If a stalking horse bidder is selected, the company would provide a break-up fee and expense reimbursement in a total amount not to exceed 3% of the proposed purchase price if that party was not ultimately the winning bidder.

A stalking horse bidder may be selected by Cloud Peak up to two days before the auction date.

Non-binding indications of interest must be submitted by the earlier of 5 p.m. ET on June 5 or one calendar day after the court approves the bid procedures.

Binding bids are due by 5 p.m. ET on June 21.

An auction will be held on June 26, if necessary. Bids at auction must be made in minimum increments of $250,000.

Cloud Peak is a Gillette, Wyo., coal mining company. The company filed bankruptcy on May 10 under Chapter 11 case number 19-11047.

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