Mission Coal asset sale procedures approved; auction set for Feb. 27

By Caroline Salls

Pittsburgh, Dec. 21 – Mission Coal Co., LLC obtained court approval to enter into a stalking horse bid agreement with its debtor-in-possession financing lenders, according to an order filed Friday 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 order said the stalking horse bid will consist of a $145 million credit bid by the DIP lenders, plus assumed liabilities, plus $50,000 on account of purchased avoidance actions, plus $38 million in additional cash consideration earmarked for an estate retained professionals escrow amount and a payroll escrow amount.

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 Feb. 13.

An auction will be held on Feb. 27, if necessary. The minimum overbid amount is $1 million.

The sale hearing is scheduled for March 20.

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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