Inmet Mining gets OK to continue using DIP note through June 16

By Sarah Lizee

Olympia, Wash., June 2 – Inmet Mining, LLC received further interim approval of a $46.2 million new-money debtor-in-possession note via lender Black Mountain Marketing and Sales LP, according to an order filed with the U.S. Bankruptcy Court for the Eastern District of Kentucky.

The court authorized the company to use part of the DIP note through June 16.

A final hearing is scheduled for June 15.

Following a final order, the company will have access to all of the new money under the DIP note, 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.

As previously reported, the official committee of unsecured creditors has filed an objection to the DIP financing, saying that it is designed solely for the benefit of the lender.

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

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