Cambrian Coal receives confirmation of Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., Feb. 17 – Cambrian Coal LLC’s Chapter 11 plan of liquidation was confirmed on Tuesday by the U.S. Bankruptcy Court for the Eastern District of Kentucky.

According to the disclosure statement, the plan will be funded by liquidating trust assets, consisting of cash held by the Cambrian estates after taking into account distributions made on the plan effective date, all causes of action, all privileged documents and communications and all other assets existing on the effective date after taking into account distributions required to be made before the effective date, as previously reported.

Administrative claims will be paid in full in cash.

Holders of priority tax claims and other priority claims will receive a share of any liquidating trust assets remaining after payment in full of administrative claims, secured claims and professional fees.

Secured claims will be paid in full in cash or holders will receive the collateral securing the claims.

Richmond Hill-Essex claims will be treated in line with a settlement order.

If disputed pre-bankruptcy ABL and term loan claims are ultimately allowed, they will receive treatment equal to that of general unsecured creditors.

Holders of general unsecured claims will receive a share of any remaining liquidating trust assets after payment in full of senior claims.

Equity interests will be canceled, released and extinguished.

Cambrian is a Belcher, Ky.-based coal company. The company filed bankruptcy on June 16, 2019 under Chapter 11 case number 19-51200.

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