Hartshorne: Tribeca seeks to delay confirmation hearing amid objections

By Sarah Lizee

Olympia, Wash., Dec. 1 – Hartshorne Holdings, LLC pre-petition lender Tribeca Global Natural Resources Ltd. asked the U.S. Bankruptcy Court for the Western District of Kentucky to continue the plan confirmation hearing to Jan. 5 from Dec. 2, according to a motion filed Monday.

Tribeca said that at the status hearing held on Nov. 23, the court indicated that the confirmation hearing would not be held on Dec. 2 unless all objections to the debtors’ plan had been consensually resolved.

Tribeca said its objections have not and will not be resolved by then.

As previously reported, Tribeca and its affiliates and SP2 Royalty Co., LLC objected to the plan on Nov. 2.

Tribeca is the lender under a pre-bankruptcy secured facility with a pre-petition balance of roughly $42.48 million, as well as the lender of the debtors’ debtor-in-possession facility, which has a current balance due of $8.1 million, Tribeca said.

Tribeca claimed in its objection that both the pre-petition secured debt and the DIP loan were unpaid as of Nov. 2.

Additionally, SP2 Royalty said it was owed $356,268 in royalty payments which were supposed to have been paid by the debtors on the maturity date of the DIP loan on July 20.

The DIP loan and pre-petition secured debt treatment outlined in the plan “ignores the fact that the DIP loan not only constitutes a super-priority lien against all of [the] debtors’ assets, it constitutes an allowed super-priority administrative claim,” the group said in their objection.

“As such, and subject to the terms of the DIP order, the DIP loan must be paid in full prior to the payment of any other administrative claim.”

The group said that because the amended plan fails to provide for the DIP loan repayment, it is not confirmable.

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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