Mongolian Mining representative’s Chapter 15 case closure motion OK’d

By Caroline Salls

Pittsburgh, June 7 – Mongolian Mining Corp.’s foreign representative’s motion for closure of the company’s Chapter 15 case was granted Wednesday by the U.S. Bankruptcy Court for the Southern District of New York.

Foreign representative Simon Conway said in the motion that Mongolian Mining’s Cayman Island and Hong Kong schemes of arrangement took effect on May 4, as did bilateral arrangements with some non-scheme creditors.

“With the entry of the recognition order by this court and the consummation of the restructuring, the foreign representative has determined that there is no longer a reason for this Chapter 15 case to remain open,” Conway said.

As previously reported, under the scheme, creditors will be eligible to receive new senior guaranteed secured notes, new equity-accounted unsecured perpetual notes and equity.

Interest on the new notes will range from 0% in cash and 5% in kind to 8% in cash and 0% in kind, depending on the price of Australian coal and on whether an expansion trigger event occurs.

The new notes will mature on Sept. 30, 2022.

Interest on the new perpetual notes, which will be indefinitely deferrable, will accrue at 0% to 15% depending on the timing of an expansion trigger event, and will reach 15% by no later than 2027.

Mongolian Mining, an Ulaanbaatar, Mongolia-based coking coal producer and exporter, filed for bankruptcy on March 22. The Chapter 15 case number is 17-10695.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.