Ulaanbaatar, Mongolia-based Mongolian Mining filed for Chapter 15 protection with the U.S. Bankruptcy Court in the Southern District of New York, case number 17-10695. The Company, which engages in mining, processing, transportation and sale of coal products in Mongolia, is represented by Timothy E. Graulich of Davis Polk & Wardwell.
The Company is currently operating in Provisional Liquidation by order of the Grand Court of the Cayman Islands and restructuring by way of both Cayman Islands and Hong Kong schemes of arrangement, which are materially identical. If the effective date of the restructuring has not occurred on or before May 8, 2017, the terms of the restructuring support agreements will lapse automatically.
According to documents filed with the Court, “In order to mitigate decreasing profit margins, the Group made efforts to penetrate the inland China market through new sales terms from 2014 onwards which in FY15 started to produce positive profit margins. Nevertheless, the downturn in the international coking coal market has meant that revenue and sales volume for the Group decreased significantly in recent years.”
Mongolian Mining’s recently reported assets of $1.6 billion.
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