Hartshorne Holdings details voting results for plan of liquidation

By Sarah Lizee

Olympia, Wash., Oct. 29 – Hartshorne Holdings, LLC’s voting results for its plan of liquidation were filed Wednesday in the U.S. Bankruptcy Court for the Western District of Kentucky.

The one holder of $7.63 million DIP loan claims and the one holder of $42.48 million secured lender claims voted to reject the plan.

The one holder of $5,760.59 other secured claims against Hartshorne Group, the two holders of $1.01 million other secured claims against Hartshorne Mining and the one holder of $3,882.33 other secured claims against Hartshorne Land voted to accept the plan.

The one holder of $7,340.80 general unsecured claims against Hartshorne Holdings and the two holders of $175,237.23 of general unsecured claims against Hartshorne Group voted to accept the plan.

A total of 23 holders, or 95.83% in number, of $843,819.37, or 98.12% in amount, of general unsecured claims against Hartshorne Mining voted to accept the plan, while one holder, or 4.17% in number, of $16,186.69, or 1.88% in amount, voted to reject it.

All 10 holders of $14,243.82 general unsecured claims against Hartshorne Land voted to accept the plan.

No ballots were received from holders of other secured claims against Hartshorne Holdings.

Under the plan, holders of priority claims will be paid in full in cash, as previously reported.

Holders of debtor-in-possession loan claims, secured lenders claims and other secured claims will receive the collateral securing their claims, retention of any valid liens on collateral, or other treatment as may be agreed to by the holders, debtors and liquidation trustee, as applicable.

Holders of general unsecured claims will receive their pro rata share of the proceeds of the liquidation trust in excess of any amounts necessary to pay all permissible liquidation trustee fees and expenses, provided that the proceeds will only be available for payment of allowed general unsecured claims to the extent that the liquidation trustee has paid in full or fully reserved for, all the carve-out escrow, the post-petition fee escrow, U.S. trustee fees, allowed general administrative expense claims, allowed priority tax claims, allowed priority claims, allowed secured lenders claims, and allowed other secured claims. Holders of general unsecured claims will also receive their pro rata share of a committee settlement, if approved by the court.

Interests and intercompany claims will be canceled with no distributions.

The plan distributions will be funded from the debtors’ cash on hand and applicable sale proceeds.

The combined plan confirmation and disclosure statement approval hearing is set for Nov. 9.

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.

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