Rhino Resource reorganization plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Jan. 5 – Rhino Resource Partners LP’s amended joint plan of reorganization drew an objection Tuesday from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

Vara said he objects to the plan because it includes an overly inclusive definition of parties covered by the exculpation provisions, including non-fiduciaries of the estate.

“Exculpation provisions are meant to limit liability to the fiduciaries in the case and only for acts occurring during the case and while acting as an estate fiduciary,” he said.

A combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Jan. 15.

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 company filed bankruptcy on July 22 under Chapter 11 case number 20-12043.

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