Mission Coal secures confirmation of fourth amended Chapter 11 plan

By Caroline Salls

Pittsburgh, April 16 – Mission Coal Co., LLC’s fourth amended Chapter 11 plan was confirmed Monday by the U.S. Bankruptcy Court for the Northern District of Alabama.

The company said the plan calls for a transfer of its assets to a winning bidder to be selected following an auction process.

As previously reported, Mission Coal selected Murray Energy Corp. as the successful bidder to acquire its Oak Grove, Seminole Alabama and Maple Eagle Mining complexes in Alabama and West Virginia.

The buyer is an entity that is 79% held by Murray Energy and 21% held by Javelin Global Commodities (UK) Ltd.

The assets at the three complexes will be purchased for a total consideration of $264.7 million and the assumption of roughly $70 million in reclamation liabilities.

Of the $264.7 million in total consideration, the notice said $160 million will be paid in the form of take-back paper issued by buyer to Mission Coal’s current debtor-in-possession lenders and $42.8 million will be paid in cash.

The buyer will also fund $31.7 million in estimated cure costs, tax liabilities, post-bankruptcy payables and other administrative liabilities upon closing, and Javelin will cause $10 million in cash to be put on the buyer’s balance sheet to support the purchased assets following the closing.

A plan administrator will wind down the Mission Coal debtors’ businesses and affairs and pay and reconcile claims.

Creditor recoveries will be funded using sale proceeds, a professional fee escrow amount, a wind-down escrow amount and a general unsecured claims amount.

Under the plan, holders of priority claims will be paid in full.

Holders of other secured claims, including secured tax claims, will either be paid in full in cash, receive the collateral securing the claims or have their claims reinstated.

Debtor-in-possession facility claims will be paid in full in cash.

Holders of second-lien claims will receive a share of the remaining sale proceeds to the extent DIP facility claims are paid in full in cash.

Holders of general unsecured claims will receive a share of the general unsecured claims amount and any remaining sale proceeds after DIP facility claims and second-lien secured claims are paid in full in cash.

Interests will be canceled, released and extinguished, and holders will not receive any distribution.

Mission Coal is a Kingsport, Tenn.-based coal company. The company filed bankruptcy on Oct. 14, 2018 under Chapter 11 case number 18-04177.

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