Armstrong Energy filed with the U.S. Bankruptcy Court a Second Amended Joint Chapter 11 Plan of Reorganization, which notes, “On the Effective Date, any Remaining Collateral or Remaining Collateral Proceeds that are not used to fund the Distribution Reserve Accounts in accordance herewith in excess of $1.5 million shall be distributed to Holders of Allowed Senior Notes Claims. Beginning on the date that is 30 days after the Effective Date and at the end of each subsequent 60-day period thereafter, and at such other times as the Plan Administrator shall determine as appropriate, the Plan Administrator shall determine the amount of Cash required to adequately maintain each of the Distribution Reserve Accounts (other than the GUC Reserve or the Wind-Down Reserve).”
In addition, “Effective as of the Effective Date, the Debtors’ obligations under the Senior Notes Indenture shall be deemed terminated, cancelled, and released. The GUC Reserve shall have been established and funded with the GUC Reserve Amount as follows: (a) Thoroughbred shall have contributed $550,000; (b) Knight Hawk shall have contributed $425,000; and (c) the Debtors shall have contributed $1,225,000.”
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