Hartshorne unsecured creditors committee withdraws conversion motion

By Caroline Salls

Pittsburgh, Aug. 14 – Hartshorne Holdings, LLC’s official committee of unsecured creditors has withdrawn its motion for conversion of the company’s Chapter 11 case to Chapter 7, according to a notice filed Thursday with the U.S. Bankruptcy Court for the Western District of Kentucky.

As previously reported, the committee said in the conversion motion filed in June that it was seeking “immediate conversion of the debtors’ cases to Chapter 7 in order to avoid continuing significant losses to and diminution of estate assets, especially as there is no reasonable likelihood of rehabilitation of the debtors’ business and because the debtors are unlikely to effectuate the confirmation of a Chapter 11 plan.”

The committee said the company ran a quick and expensive sales process that failed to yield a bid.

According to the motion, a Chapter 7 trustee will be able to determine liens, liquidate Hartshorne’s assets and determine whether to prosecute the claims and causes of action of the estates.

Rumsey, Ky.-based Hartshorne develops and operates coal mining projects in the United States. The company filed bankruptcy on Feb. 20 under Chapter 11 case number 20-40133.

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