Murray Metallurgical wins approval of Oak Grove asset sale procedures

By Caroline Salls

Pittsburgh, April 13 – Murray Metallurgical Coal Holdings, LLC received court approval of the bid procedures for the proposed sale of substantially all of the assets of Murray Oak Grove Coal, LLC, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Ohio.

A stalking horse bid was made in the form of a credit bid by a new entity to be formed by principal stakeholders Murray Energy Corp. and MC Southwork LLC.

Specifically, the new company will credit bid up to $14.7 million of junior debtor-in-possession financing obligations and up to $3 million of pre-bankruptcy term loan obligations and will provide up to $50.26 million in new first-lien term loans to satisfy senior DIP facility claims, up to $120.76 million in new second-lien term loans and up to $45 million of new preferred equity.

The second-lien term loans and preferred equity will be used to satisfy pre-bankruptcy last-out term loan claims.

No bid protections will be paid to the new company if it is not ultimately the winning bidder for the Oak Grove assets.

Under the procedures, competing bids are due by 4 p.m. ET on April 24.

An auction will be held on April 29, if necessary.

The sale hearing is scheduled for May 7.

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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