Murray Metallurgical files plan based on restructuring support deal

By Caroline Salls

Pittsburgh, April 6 – Murray Metallurgical Coal Holdings, LLC filed a Chapter 11 plan and related disclosure statement Friday with the U.S. Bankruptcy Court for the Southern District of Ohio.

According to the disclosure statement, the plan is based on a Feb. 11 restructuring support agreement reached with the company’s pre-bankruptcy term loan lenders, Murray Energy Corp., Murray Metallurgical Coal Properties, LLC, Javelin Investment Holdings, LLC and Javelin Global Commodities (UK) Ltd.

Under the plan, administrative claims, priority tax claims, other priority claims and other secured claims will be unimpaired.

Holders of senior debtor-in-possession financing claims will receive new first-lien facility loans equal to the amount of senior DIP claims held immediately before the plan effective date, as well as junior DIP claims.

Holders of junior DIP financing claims will receive a share of $3.5 million in new first-lien facility loans.

Holders of pre-bankruptcy term loan claims will receive a share of new second-lien facility loans and new preferred equity.

Holders of a Bay Point secured claim will receive either an allowed $4 million claim or an allowed claim to be determined by the court in connection with the Murray Oak Grove Coal, LLC v. Bay Point Capital Partners II, LP adversary proceeding.

A post-bankruptcy Javelin global claim will be satisfied and released in exchange for Murray Metallurgical’s assumption and assignment of post-bankruptcy Javelin global agreements to a new company.

Holders of general unsecured claims will receive a distribution from any distributable consideration.

Interests in the holding company will be cancelled, released and extinguished.

A plan administrator will be appointed to wind down the company’s businesses and affairs and pay and reconcile claims.

Murray Metallurgical is based in St. Clairsville, Ohio. The company filed bankruptcy on Feb. 11 under Chapter 11 case number 20-10390.

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