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Trinity Coal seeks appointment of trustee, chief restructuring officer
By Jim Witters
Wilmington, Del., March 1 - Trinity Coal Corp. and lender Credit Agricole Corporate and Investment Bank are seeking the appointment of a temporary Chapter 11 trustee and a permanent chief restructuring officer, according to documents filed Feb. 28 with the U.S. Bankruptcy Court for the Eastern District of Kentucky.
The involuntary Chapter 11 case was filed by lenders Credit Agricole, ING Capital LLC and Natixis, New York Branch, which have a total of $104.34 million of claims against Trinity.
Credit Agricole had sought the appointment of a trustee to oversee the business and preserve the value of the estates during the bankruptcy process.
"While they do not admit the allegations set forth in the trustee motion, and reserve all of their rights in this regard, the alleged debtors emphatically support approval of the CRO motion and entry of the agreed order," Trinity said in the motion.
Appointing a CRO in the case "would eliminate the prospect of protracted, expensive and uncertain litigation that would otherwise drain their scarce economic and human resources," and allow the company "to move forward in a consensual and a constructive fashion with their lenders, including Credit Agricole, and turn their focus to maximizing the value of their assets for the benefit of creditors and parties in interest," the motion stated.
Court approval of the agreement also "will reduce the adversarial nature of these involuntary Chapter 11 cases and eliminate avoidable litigation," the company said.
The agreed order contemplates the appointment of David Stetson as the chief restructuring officer.
A hearing on the proposed agreement is scheduled for March 5.
Trinity, a Scott Depot, W.Va.-based coal mining company, was brought into involuntary bankruptcy on Feb. 20. The Chapter 11 case number is 13-50364.
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