Murray Metallurgical Coal U.S. Trustee objects to disclosure statement

By Caroline Salls

Pittsburgh, May 1 – The U.S. Trustee overseeing Murray Metallurgical Coal Holdings, LLC’s bankruptcy case objected to the disclosure statement for the company’s proposed Chapter 11 plan, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

Regions 3 and 9 U.S. trustee Andrew R. Vara said in his objection that approval of the disclosure statement would be premature.

In addition, Vara said the Murray Metallurgical debtors “fail to include adequate information to allow a creditor or holder of a claim or interest to make an informed judgment regarding whether to vote in favor of the plan.”

Specifically, the U.S. Trustee said the disclosure statement does not provide dividend projections and percentage of distribution to classes of creditors, a liquidation analysis and adequate information regarding the legal basis for the company’s belief that the plan is confirmable with “problematic provisions” such non-consensual third-party releases and an overly inclusive definition of exculpated parties.

Murray Metallurgical is based in St. Clairsville, Ohio. The company filed bankruptcy on Feb. 11 under Chapter 11 case number 20-10390.

© 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.