BankruptcyData’s detailed analysis and summary of Armstrong Energy’s Third Amended Joint Chapter 11 Plan of Reorganization, dated January 24, 2018, is now available. The U.S. Bankruptcy Court confirmed the Plan on February 2, 2018; however, an effective date has not yet been issued.
BankruptcyData notes, “Generally speaking, the Plan: provides for the full and final resolution of all funded debt obligations; designates a Plan Administrator to wind down the Debtors’ businesses and affairs; pay and reconcile Claims as provided therein; and administer the Plan in an effective and efficient manner; provides for 100% recoveries for Holders of Allowed Administrative Claims, Priority Tax Claims, Professional Fee Claims, and Other Secured Claims; provides for the distribution of the proceeds of certain unencumbered assets to Holders of General Unsecured Claims; and provides for the Sale Transaction. The Debtors believe that Confirmation of the Plan will avoid the lengthy delay and significant cost of liquidation under chapter 7 of the Bankruptcy Code.”
In addition, “Senior Note Claims will receive its pro rata share of: 100% of the HoldCo Equity in satisfaction of the Noteholder Equity Issuance Consideration; $19,000,000 in cash to be funded by Murray Energy Corporation in accordance with the Transaction Agreement; $12,000,000 in aggregate principal amount of MEC Notes to be delivered by Murray Energy Corporation in accordance with the Transaction Agreement; and all remaining collateral and remaining collateral proceeds and all assets and proceeds remaining in the general account, until such Allowed Senior Notes Claims are paid in full, for a rate of recovery of 100%.”
BankruptcyData premium subscribers receive access to the full summary, which provides further details on corporate background, events leading to Armstrong Energy’s November 1, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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