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Cambrian Coal To File Voluntary Petitions For Relief Under Chapter 11 For Its Restructuring

Coal News - Published on Sun, 23 Jun 2019

Image Source: Business Journals
Cambrian Coal and its affiliated companies 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 June 16, 2019. Cambrian has received commitments from certain of its lenders for up to USD 15 million of debtor-in-possession 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.

Mr Mark Campbell, President of Cambrian, said that “Today’s announcement represents a significant step in our ongoing efforts to secure our company’s position. 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 programs and intends to pay suppliers in full for goods and services provided after the filing date of June 16, 2019.

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Posted By : Sanju Moirangthem on Sun, 23 Jun 2019
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