Hartshorne seeks OK to sell coal wash plant to DIP lender affiliate

By Sarah Lizee

Olympia, Wash., Nov. 2 – Hartshorne Holdings, LLC is seeking court approval to sell its coal washing structures and related property located in McLean County, Ky., to Frozen Star Holdings II LLC, an affiliate of the company’s debtor-in-possession finance parties, for $4.5 million, according to a motion filed Friday in the U.S. Bankruptcy Court for the Western District of Kentucky.

The purchaser will credit bid the purchase price on the plan effective date, under which it will be assigned $4.5 million of the $7.625 million DIP finance parties’ post-petition secured super-priority administrative expense DIP financing claim.

The DIP finance parties agreed that the DIP loan claim will be $3.125 million if the private sale is approved.

The debtors said in their motion that they do not believe that the cost and expense of running a public auction would materially increase the sale proceeds.

Rumsey, Ky.-based Hartshorne develops and operates coal mining projects in the United States. The company filed bankruptcy on Feb. 20, 2020 under Chapter 11 case number 20-40133.

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