Inmet gets access to $11.2 million of DIP note via Black Mountain

By Sarah Lizee

Olympia, Wash., April 14 – Inmet Mining, LLC received interim approval to access $11.2 million of a $46.2 million new-money debtor-in-possession note via lender Black Mountain Marketing and Sales LP, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of Kentucky.

Following a final order, the company will have access to all of the new money, in addition to a rollup of $40 million of prepetition debt.

The debtor and Black Mountain are party to a master coal purchase and sale agreement and a prepaid purchase agreement confirmation.

The DIP note bears interest at 10% per annum.

It is set to mature on Sept. 5, subject to earlier maturity following certain events.

The company also gained interim approval to use cash collateral.

Inmet said that without the financing, it would be unable to operate and would face substantially more obstacles and uncertainty going forward as it seeks to start a process to sell substantially all of its assets and business operations.

A final hearing is scheduled for May 9.

The Knoxville, Tenn.-based coal mining company filed Chapter 11 bankruptcy on April 5 under case number 23-70113.

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