Murray Metallurgical: Stalking horse bidder wins Oak Grove auction

By Caroline Salls

Pittsburgh, May 5 – Murray Metallurgical Coal Holdings, LLC announced Tuesday that the stalking horse bidder was the winning bidder following an auction for the sale of substantially all of the assets of Murray Oak Grove Coal, LLC, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Ohio.

As previously reported, 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.

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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