Cambrian Coal and its affiliated companies has announced that it filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for Eastern District of Kentucky in Lexington on 16 June 2019.
Cambrian has received commitments from certain of its lenders for up to US$15 million of debtor-in-possession (DIP) financing and will explore a sale process under court supervision. The company expects its mining operations and customer shipments to continue in the ordinary course throughout the court-supervised process.
“Today’s announcement represents a significant step in our ongoing efforts to secure our company’s position,” said Mark Campbell, President of Cambrian. “We will continue to provide our customers with exceptional service as we move through this process, while maintaining and further reinforcing our position in the industry with the highest standards for safety, environmental stewardship and productivity. This court-supervised process will also allow us to prepare our company for sale. Potential buyers for the business will have the opportunity to demonstrate their interest and provide the company with a path forward. We firmly believe this is the best course of action for our company.”
The terms of the DIP financing agreement have been ordered and approved by the Bankruptcy Court, among other conditions.
Cambrian has received the Bankruptcy Court’s approval for its motions to continue paying employee wages and providing health care and other benefits. The company has also received approval to continue existing customer programmes and intends to pay suppliers in full for goods and services provided after the filing date of 16 June 2019.
Read the article online at: https://www.worldcoal.com/coal/25062019/cambrian-coal-files-voluntary-petitions-for-relief-under-chapter-11/