Armstrong Energy filed with the U.S. Bankruptcy Court a Disclosure Statement for the Company’s First Amended Joint Chapter 11 Plan of Reorganization.
The Disclosure Statement notes, “Pursuant to the Plan, the Debtors, Post-Effective Date Debtor, or Plan Administrator shall pay or provide for payments of Claims as follows: The Plan Administrator shall establish each of the Distribution Reserve Accounts, which shall be used to make distributions in Cash to Holders of Allowed Claims pursuant to the terms of the Plan….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.”
In addition, “MAEVA believes the value achieved by the successful consummation of the Sale Transaction and as provided under the Plan is a reasonable measure of the Debtors’ value in light of, among other things, (1) the robust and exhaustive nature of the marketing process, both pre and postpetition, and (2) the active bidding that took place during the marketing process.”
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