Mongolian Mining foreign representative eyes Chapter 15 case closure

By Caroline Salls

Pittsburgh, May 4 – Mongolian Mining Corp.’s foreign representative asked the U.S. Bankruptcy Court for the Southern District of New York to close its Chapter 15 bankruptcy case, according to a motion filed May 4.

Foreign representative Simon Conway said Mongolian Mining’s Cayman Island and Hong Kong schemes of arrangement took effect on May 4, as did bilateral arrangements with some non-scheme creditors.

“With the entry of the recognition order by this court and the consummation of the restructuring, the foreign representative has determined that there is no longer a reason for this Chapter 15 case to remain open,” Conway said in the motion.

As previously reported, under the scheme, creditors will be eligible to receive new senior guaranteed secured notes, new equity-accounted unsecured perpetual notes and equity.

Interest on the new notes will range from 0% in cash and 5% in kind to 8% in cash and 0% in kind, depending on the price of Australian coal and on whether an expansion trigger event occurs.

The new notes will mature on Sept. 30, 2022.

Interest on the new perpetual notes, which will be indefinitely deferrable, will accrue at 0% to 15% depending on the timing of an expansion trigger event, and will reach 15% by no later than 2027.

The U.S. court will consider the case closure motion on June 8.

Mongolian Mining, an Ulaanbaatar, Mongolia-based coking coal producer and exporter, filed for bankruptcy on March 22. The Chapter 15 case number is 17-10695.

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