Mission Coal proposes Chapter 11 plan for distributing sale proceeds

By Caroline Salls

Pittsburgh, Jan. 3 – Mission Coal Co., LLC filed its Chapter 11 plan and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the Northern District of Alabama.

The company said the plan calls for a transfer of its assets to a winning bidder to be selected following an auction process.

A plan administrator will wind down the Mission Coal debtors’ businesses and affairs and pay and reconcile claims.

Creditor recoveries will be funded using sale proceeds, a professional fee escrow amount, a wind down escrow amount and a general unsecured claims amount.

Under the plan, holders of priority claims will be paid in full.

Holders of other secured claims, including secured tax claims, will either be paid in full in cash, receive the collateral securing the claims or have their claims reinstated.

Debtor-in-possession facility claims will be paid in full in cash.

Holders of second-lien claims will receive a share of remaining sale proceeds to the extent DIP facility claims are paid in full in cash.

Holders of general unsecured claims will receive a share of the general unsecured claims amount and any remaining sale proceeds after DIP facility claims and second-lien secured claims are paid in full in cash.

Interests will be canceled, released, and extinguished, and holders will not receive any distribution.

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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