Lighthouse Resources receives confirmation of plan of reorganization

By Sarah Lizee

Olympia, Wash., March 10 – Lighthouse Resources Inc.’s Chapter 11 plan of reorganization was confirmed Wednesday by the U.S. Bankruptcy Court for the District of Delaware, according to an order.

The company said the plan and statement are the result of extensive negotiations with lenders holding $256.02 million in pre-petition secured debt and holders of $182.04 million in surety/bond obligations, as previously reported.

The plan contemplates that the debtors’ assets will be transferred to a reclamation trust entity that will be responsible for reclaiming the Decker Mine and performing the reclamation obligations at the Black Butte Mine associated with the ownership interest in the Black Butte JV, and otherwise monetizing the assets of the debtors’ business and operations.

Upon consummation of the plan, Lighthouse will be wholly owned by the reclamation trust entity.

Under the plan, holders of allowed administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash.

Allowed other secured claims will receive payment in full in cash or have their claims reinstated.

Holders of allowed senior secured claims will receive the class A reclamation trust entity interests and payments provided for under the reclamation trust budget.

Holders of allowed surety claims will receive the reclamation trust entity bonding agreement, which includes reinstatement of certain rights; the obligations of the reclamation trust entity to complete the reclamation plans; and contributions to the reclamation sinking fund by debtor subsidiary KCP, Inc. for the use in completing the reclamation plans in conjunction with the collateral contributed by the sureties to the reclamation sinking fund, decreasing the sureties’ exposure for potential liability obligations related to for reclamation claims.

The sureties will also have rights to the initial wind-down funding amount and the reclamation sinking fund as necessary to reclaim the right to such funds in the event of a bond forfeiture or other adverse action by the reclamation claimants.

Each holder of an allowed general unsecured claim will receive a pro rata class B reclamation trust entity interest.

Allowed reclamation claims will be satisfied by reinstatement against the applicable reorganized debtors.

Lighthouse equity interests will be canceled.

Lighthouse Resources is a South Jordan, Utah, owner and operator of thermal coal mines. The company filed bankruptcy on Dec. 3 under Chapter 11 case number 20-13056.

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