Murray Metallurgical Coal receives confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Nov. 30 – Murray Metallurgical Coal Holdings, LLC’s third amended joint Chapter 11 plan was confirmed Wednesday by the U.S. Bankruptcy Court for the Southern District of Ohio.

According to the disclosure statement, the plan is based on a Feb. 11, 2020 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 pre-bankruptcy term loan claims will receive their pro rata share of a new third-lien facility loan and new preferred equity.

The holder of the Bay Point secured claim will receive a new Bay Point secured note. If the holder votes to accept the plan, the Bay Point secured claim will be deemed allowed in the amount of $4 million. If they do not vote to accept the plan, the claim will be determined by the bankruptcy court in connection with the adversary proceeding between Murray Oak Grove Coal, LLC and Bay Point Capital Partners II, LP.

Holders of general unsecured claims and intercompany claims will not receive any distribution.

Holders of intercompany interests will be reinstated or canceled and released without any distribution.

Section 510(b) claims will be canceled, released and extinguished as of the plan effective date without any distribution.

Interests in Murray Metallurgical Coal Holdings will be canceled, released and extinguished.

The amount of the new third-lien facility will be equal to the pre-petition last-out term loans outstanding as of immediately prior to the effective date – which will not include the $3 million of pre-petition last-out term loans contributed by MC Southwork to Hatfield Metallurgical Holdings LLC – minus $45 million.

The loan will bear interest at 8˝% payable in kind on a quarterly basis and will mature in five years and three months from the effective date.

Murray Metallurgical is based in St. Clairsville, Ohio. The company filed bankruptcy on Feb. 11, 2020 under Chapter 11 case number 20-10390.

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