Murray Energy OK’d to enter stalking horse deal with lender entity

By Caroline Salls

Pittsburgh, Jan. 9 – Murray Energy Holdings Co. received court approval to enter into a stalking horse bid agreement with an entity formed by its super-priority term loan agent, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Ohio.

The lender entity has committed to submit a credit bid for substantially all of the company’s assets.

The stalking horse bid does not require payment of any break-up fee or expense reimbursement if the lender entity is not ultimately the high bidder.

The sale will be completed through Murray’s plan of reorganization.

Under the company’s approved sale timeline, preliminary bids are due by 4 p.m. ET on Feb. 4, with a 4 p.m. ET on March 16 final bid deadline.

An auction will be held on March 26, if necessary. The sale hearing is scheduled for June 2.

The minimum overbid increment will be $1 million.

Murray Energy is a Saint Clairsville, Ohio, coal company. The company filed bankruptcy on Oct. 29 under Chapter 11 case number 19-56885.

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