James River Coal Plan Confirmed


According to the U.S. Bankruptcy Court docket, the Court entered an order confirming James River Coal’s Second Amended Plan of Liquidation.

The Disclosure Statement notes, “The Plan contemplates the liquidation and dissolution of the Debtors and the resolution of all outstanding Claims against, and Interests in, the Debtors. The Debtors have proposed a Plan that they believe will treat their creditors in an economic and fair manner.”

The Disclosure Statement continues, “In developing the Plan, the Debtors, in consultation with the Committee, considered various issues relating to how the distributable value should be allocated amongst the creditors of the various Debtors, including, without limitation, (a) whether the elements necessary to obtain an order of substantive consolidation are satisfied in these Chapter 11 Cases; (b) the value of the Estates on a consolidated and a non-consolidated basis, and the proper method of determining such value; (c) the projected recoveries of Creditors on a consolidated basis with and without implementation of substantive consolidation, in whole or in part; (d) whether and how to attribute the value of the proceeds of the various sales of the Debtors’ assets to specific Debtors; (e) the probability of avoidance of certain prepetition transactions; and (f) the nature and treatment of Intercompany Claims.”

This coal producer and seller filed for Chapter 11 protection on April 7, 2014, listing $1.2 billion in pre-petition assets. Read more James River Coal bankruptcy news.