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CAMBRIAN HOLDING: Unsecureds to Get Up to 30% in Plan

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Cambrian Holding Company, Inc., et al., submitted a Joint Plan and a Joint Disclosure Statement.

On June 26, 2019, the Office of the United States Trustee appointed the Committee, consisting of the following members: TECO Diversified, Inc., Austin Powder Co., Jones Oil Co., Inc./Jones Petroleum Services, LLC, Kentucky River Properties, LLC, Parsley’s General Tire, Inc., Whayne Supply Co., Kentucky Coal Employers Self Insurance Guaranty Fund, Robert J. Zik and Pamela Dotson Tester. On July 1, 2019, the Committee selected Foley & Lardner LLP and Barber Law PLLC as its counsel. The Committee thereafter selected B. Riley Financial as its financial advisors.

Class 1 Other Priority Claims. This class is impaired with estimated amount of claims of [$0-$1 million] and estimated return of 100%, subject to outcome of litigation brought by the Liquidating Trustee. A Holder of an Allowed Class 1 Claim shall receive its Pro Rata Share of any remaining Liquidating Trust Assets after providing for the payment in full of all Allowed Secured Claims, Allowed Administrative Claims, and Allowed Professional Fee Claims.

Class 3 Richmond Hill- Essex Claims. This class is impaired with estimated amount of claims of $45,698,363 and estimated return of 0% to 10%. The Richmond-Hill Essex Claims shall receive the treatment given to such claims under the Richmond- Hill Essex Settlement Order.

Class 4 Prepetition ABL Agent Claims. This class is impaired with estimated amount of claims of $3,349,272 and estimated return of 0% to 20%, depending on whether the claim is allowed and, if so, litigation recoveries by the Liquidating Trustee. The allowance of the Class 4 Claims will be Disputed by the Liquidating Trustee. No distributions shall be made on account of the Pre-Petition ABL Claims unless a Final Order is entered allowing such claims.

Class 5 Prepetition Term Agent Claims. This class is impaired with estimated amount of claims of $77,881,492 and estimated return of 0% to 10%, depending on whether the claim is allowed and, if so, litigation recoveries by the Liquidating Trustee. The allowance of the Class 5 Claims will be Disputed by the Liquidating Trustee. No distributions shall be made on account of the Prepetition Term Agent Claims unless a Final Order is entered allowing such claims.

Class 6 General Unsecured Claims totaling $50 million to $100 million will recover 0% to 30%, subject to outcome of litigation brought by the Liquidating Trustee. A Holder of an Allowed General Unsecured Claim shall receive its Pro Rata Share of any remaining Liquidating Trust Assets after providing for the payment in full of all Allowed Secured Claims, Allowed Administrative Claims, Allowed Priority Tax Claims and Allowed Other Priority Claims.

Class 7 Equity Interests are impaired. Class 7 Equity Interests will be canceled, released, and extinguished as of the Effective Date, and will be of no further force or effect.

The Debtors’ cash and the other Liquidating Trust Assets shall be used to fund the Distributions to Holders of Allowed Claims against the Debtors in accordance with the treatment of such Claims provided in the Plan.

A full-text copy of the Joint Disclosure Statement dated July 15, 2020, is available at https://tinyurl.com/y6canpv5 from PacerMonitor.com at no charge.

Counsel to the Debtors:

Patricia Burgess
FROST BROWN TODD LLC
250 West Main Street, Suite 2800
Lexington, Kentucky 40507
Telephone: (859) 231-0000
Facsimile: (859) 231-0011
E-mail: pburgess@fbtlaw.com

– and –

A.J. Webb
FROST BROWN TODD LLC
3300 Great American Tower
301 East Fourth Street
Cincinnati, Ohio 45202
Telephone: (513) 651-6800
Facsimile: (513) 651-6981
E-mail: awebb@fbtlaw.com

Counsel for the Official Committee of Unsecured Creditors of Cambrian Holding Company, Inc. et al.:

Geoffrey S. Goodman
FOLEY & LARDNER LLP
321 North Clark Street, Suite 2800
Chicago, Illinois 60654
Telephone: (312) 832-4500
ggoodman@foley.com

T. Kent Barber, Esq.
BARBER LAW PLLC
2200 Burrus Drive
Lexington, KY 40513
Telephone: (859) 296-4372
kbarber@barberlawky.com

About Cambrian Holding

Belcher, Kentucky-based Cambrian Holding Company, Inc., and its subsidiaries produce and process metallurgical coal and thermal coal for use by utility providers and industrial companies located primarily in the eastern United States and Canada. The company began operations in 1991 and, over time, acquired various mines and mining-related assets from major coal corporations.

Cambrian Holding Company and 18 of its affiliates each filed a petition seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Ky. Lead Case No. 19-51200) on June 16, 2019. At the time of the filing, Cambrian Holding Company had estimated assets and liabilities of less than $50,000. Judge Gregory R. Schaaf oversees the cases.

The Debtors tapped Frost Brown Todd, LLC as bankruptcy counsel; Whiteford, Taylor & Preston, LLP as litigation counsel; Jefferies, LLC as investment banker; and FTI Consulting, Inc., as financial advisor. Epiq Corporate Restructuring, LLC, is the notice, claims and solicitation agent.

The Office of the U.S. Trustee appointed an official committee of unsecured creditors on June 26, 2019. The committee tapped Foley & Lardner, LLP as legal counsel; Barber Law PLLC as local counsel; and B. Riley FBR, Inc. as financial advisor.

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