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Armstrong Energy Bankruptcy DS Filed

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Armstrong Energy filed with the U.S. Bankruptcy Court a Disclosure Statement for its Joint Chapter 11 Plan of Reorganization.

According to the Disclosure Statement, “The Plan proposes to fund creditor recoveries from Cash on hand and the proceeds of a Sale Transaction pursuant to which the Debtors intend to transfer substantially all of the assets of the Estates. Following a robust marketing process, on November 1, 2017, the Debtors, the Supporting Senior Noteholders, and Knight Hawk executed a transaction agreement (the ‘Transaction Agreement’), which contemplates the Sale Transaction. Although the Debtors will continue to market their assets on a postpetition basis, the Transaction Agreement represents a floor bid for the sale of the Debtors’ assets. Subject to receiving a higher or otherwise better offer, the Debtors intend to consummate the Sale Transaction as contemplated under the Transaction Agreement and the Plan.”

In addition, “Holders of Senior Notes Secured Claims will receive equity interests in HoldCo in satisfaction of $90 million of their Secured Claims and will receive their pro rata share of the remaining collateral securing their claims, which the Debtors anticipate will primarily be Cash on hand….Holders of the Senior Notes Secured Claims will receive $10 million in preferred equity of HoldCo and an economic interest in HoldCo consistent with the terms of the RSA and as more fully described in a term sheet between Knight Hawk and the Supporting Senior Noteholders.”

The Court scheduled a December 18, 2017 hearing to consider the Disclosure Statement.

Read more Armstrong Energy bankruptcy news.

The post Armstrong Energy Bankruptcy DS Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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