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Rhino Resources seeks approval of sale procedures and DIP facility
By Caroline Salls
Pittsburgh, July 23 – Rhino Resource Partners LP requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Ohio.
Pledge Servicing Partners, LLC will serve as the stalking horse bidder. Pledge Servicing has submitted a $40 million credit bid and will assume liabilities related to the assets being sold.
If Pledge Servicing is not ultimately the winning bidder, Rhino will reimburse up to $250,000 of its sale-related expenses.
The assets would be sold in six separate groups.
Under the proposed procedures, competing bids will be due by 4 p.m. ET on Aug. 19.
An auction will be held on Aug. 25, if necessary. Bids at auction must be made in minimum increments of $100,000.
The company is requesting an Aug. 31 sale hearing. The sale is expected to close by Sept. 10.
In addition, Rhino requested court approval to obtain $11.75 million in debtor-in-possession financing
Cortland Capital Market Services LLC is the DIP loan agent.
The facility will mature 120 days after the bankruptcy filing date.
Interest will accrue at Libor plus 1,000 basis points, with a 1% floor.
The company is seeking interim access to $3.5 million of the DIP financing.
According to court documents, Rhino has $194,547,000 in total assets and $$158,832,000 of total debt.
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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