| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Hartshorne Holdings, LLC > News item |
Hartshorne: U.S. trustee objects to committee, creditor settlement
By Sarah Lizee
Olympia, Wash., Oct. 7 – The U.S. trustee overseeing Hartshorne Holdings, LLC’s Chapter 11 cases has objected to a motion for settlement between the official committee of unsecured creditors, Tribecca Global Resources Credit Pty. Ltd., which is the debtor’s primary secured creditor, and SP2 Royalty Co. LLC, according to a Wednesday filing in the U.S. Bankruptcy Court for the Western District of Kentucky.
Upon approval of the settlement, estate funds will be distributed to a claims administrator who will hold and maintain such funds for future distribution to unsecured creditors, as determined to be appropriate. The funds include $65,000 to Tribecca from the liquidation of the debtor’s estate, 10% of all additional net liquidation proceeds to Tribecca and 22.5% of all royalty interest payments to SP2.
“The need to safeguard these settlements is obvious, as any settlement of the estate rights and liabilities with any of the estate creditors may well impact estate assets available to other creditors,” Region 8 U.S. trustee Paul A. Randolph said in his objection.
He noted that while ultimately a distribution to unsecured creditors is the desired end result of any bankruptcy, it must comply with the requirements of the Bankruptcy Code in order to be allowable.
“Here, the distribution to unsecured creditors is legal if enacted through a confirmed plan of reorganization,” the U.S. trustee added.
Randolph is requesting that the court approve the settlement as an element of the plan of reorganization, but not as a stand-alone order meant to survive dismissal of the case.
Rumsey, Ky.-based Hartshorne develops and operates coal mining projects in the United States. The company filed bankruptcy on Feb. 20, 2020 under Chapter 11 case number 20-40133.
© 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.