Mission Coal DIP loan lenders submit $145 million lead bid for assets

By Caroline Salls

Pittsburgh, Dec. 6 – Mission Coal Co., LLC requested court approval to enter into a $145 million stalking horse bid agreement with its debtor-in-possession financing lenders, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Alabama.

Under the stalking horse agreement, the DIP lenders have agreed to credit bid for substantially all of Mission Coal’s assets.

The lenders are not seeking payment of any bid protections in connection with the proposed sale.

Competing bids are due by 5 p.m. ET on Jan. 21.

An auction will be held on Feb. 27, if necessary.

The company is asking the court to schedule a March 20 sale hearing.

A hearing on entry into the stalking horse agreement is scheduled for Dec. 19.

Mission is a Kingsport, Tenn.-based coal company. The company filed bankruptcy on Oct. 14 under Chapter 11 case number 18-04177.

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