Rhino Resource asks court to convert cases to Chapter 7 bankruptcy

By Sarah Lizee

Olympia, Wash., Sept. 21 – Rhino Resource Partners LP is seeking to convert its Chapter 11 cases to Chapter 7, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Ohio.

A hearing is scheduled for Oct. 13.

According to the motion, while the debtors have explored options to bring the Chapter 11 cases to a conclusion, they believe that the Chapter 7 conversion is the most expeditious and cost-effective mechanism to wind down their affairs and the cases.

The debtors said Chapter 7 would provide the best outcome for creditors, as opposed to a Chapter 11 liquidating plan, because, following the closing of the asset sale, the debtors’ only remaining assets will be certain estate actions, which have not been monetized.

The debtors also face the potential for administrative insolvency, the motion said.

Rhino is an energy limited partnership based in Lexington, Ky., that is focused on coal and energy-related assets and activities, including energy infrastructure investments. Its sponsor is Royal Energy Resources, Inc. The Chapter 11 case number is 20-12043.

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