Hartshorne’s statement, plan draw objection from Tribeca, SP2 Royalty

By Sarah Lizee

Olympia, Wash., Nov. 2 – Hartshorne Holdings, LLC’s disclosure statement and plan of reorganization drew an objection from Tribeca Global Natural Resources Ltd. and its affiliates and SP2 Royalty Co., LLC on Monday, according to a filing in the U.S. Bankruptcy Court for the Western District of Kentucky.

Tribeca is the lender under a prebankruptcy secured facility with a pre-petition balance of roughly $42.48 million, as well as the lender of the debtors’ debtor-in-possession facility, which has a current balance due of $8.1 million, Tribeca said.

Tribeca claims that both the pre-petition secured debt and the DIP loan remain unpaid at this time.

Additionally, SP2 Royalty said it is owed $356,268 in royalty payments which were supposed to have been paid by the debtors on the maturity date of the DIP loan on July 20.

The DIP loan and pre-petition secured debt treatment outlined in the plan “ignores the fact that the DIP loan not only constitutes a super-priority lien against all of [the] debtors’ assets, it constitutes an allowed super-priority administrative claim,” the group said in their objection.

“As such, and subject to the terms of the DIP order, the DIP loan must be paid in full prior to the payment of any other administrative claim.”

The group said that because the amended plan fails to provide for the DIP loan repayment, it is not confirmable.

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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