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Armstrong Energy Bankruptcy Plan Supplement Amended

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Armstrong Energy filed with the U.S. Bankruptcy Court a fourth amendment to the Supplement for its First Amended Plan of Reorganization. The Supplement contains the following documents to provide further detail regarding the Plan’s distribution mechanics for holders of the Debtors’ 11 3/4% Senior Secured Notes due 2019: Schedule 1: Letter of transmittal and questionnaire relating to Third Amended Joint Chapter 11 Plan.

The letter notes, “In connection with the effectiveness of the Plan and the consummation of the transactions contemplated by that certain Transaction Agreement, dated as of January 24, 2018, among Armstrong Energy, the Supporting Noteholders; Murray Kentucky Energy, the ‘Buyer’; KenAmerican Resources, and, solely with respect to Section 8.3(b) of the Transaction Agreement, Murray South America, (‘MSAI’) you, as a holder of the Existing Notes, are entitled to receive your pro rata share of (i) 100% (before dilution on account of the HoldCo Equity issued to Murray in exchange for the Contribution as described in the Transaction Agreement) of the new common equity interests in HoldCo (the ‘Common Equity’), (ii) 100% of the new preferred equity interests in HoldCo with a liquidation preference of $10,000,000 (the ‘Preferred Equity’ and together with the Common Equity, the ‘HoldCo Equity’), (iii) up to $12.0 million aggregate principal amount of 11.25% Second Lien Notes due 2021 issued by Murray Energy Corporation (the ‘MEC Notes’ and, together with the HoldCo Equity, the ‘Securities’), and (iv) up to $19,000,000 in Cash, the ‘Consideration’, plus certain other cash payments in lieu of minimum note denominations and other consideration, all as set forth under the Plan, in respect of your outstanding 11.75% Senior Secured Notes due 2019 (the ‘Existing Notes’).”

In addition, “This Letter of Transmittal only relates to the procedures necessary for you to receive your pro rata portion of the Holdco Equity and the MEC Notes (and any cash in lieu of the MEC Notes). The Cash consideration specified in item (iv) above will be distributed to the account of Noteholders through DTC on or about the Effective Date.”

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