The U.S. Bankruptcy Court approved Arch Coal’s motion for entry of an order authorizing, in light of the closing of the sale and transfer of the membership interests of Debtors Arch Coal and ICG to purchaser Quest, the dismissal of the Chapter 11 case of Debtor ICG Knott County.
As previously reported, “It is important for the Selling Debtors and the Purchaser that the Sold Debtor Case be dismissed promptly after the closing of the Knott County Sale, which occurred on April 12, 2016. The Purchaser does not wish to purchase assets that will remain subject to the ongoing bankruptcy process or the claims of creditors with respect to the Knott County Assets. If the Sold Debtor remains in these chapter 11 proceedings after being sold to the Purchaser, its estate would be subject to ‘substantial or continuing loss’ due to its reclamation obligations and its continuing operating costs, which, as described in the Knott County Sale Motion, are substantial and do not support any significant value-generating activities for the Selling Debtors.”
Read more coal bankruptcy news.
The post Arch Coal ICG Knott County Case Dismissal Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.