Mission Coal Company – Files Chapter 11, Plans Asset Sale

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October 16, 2018 – Mission Coal Company (“Mission Coal” or the “Company”) and 10 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of Alabama, lead case number 18- 23538 [Docket No. 1]. Mission Coal, a Kingsport, Tennessee-based energy company which produces and markets mostly metallurgical coal, is represented by Daniel D. Sparks of Christian & Small LLP. Further board-authorized engagements include Kirkland & Ellis, as co-counsel, Jefferies, as investment banker and Zolfo Cooper as financial advisor. The Mission Coal Board also approved the retention of Zolfo Cooper Managing Director Kevin Nystrom as Chief Restructuring Officer. In his declaration in support of the filing [Docket No. 21], Mr. Nystrom noted, “The Debtors believe that effecting an asset sale through an expedient chapter 11 process will maximize ultimate realized value for its stakeholders. Accordingly, the sale of all or substantially all of the Debtors’ assets is the primary focused outcome of this chapter 11 process.” Mr Nyland also noted that the Company was close to finalizing the terms of a proposed postpetition, debtor-in-possession (“DIP”) financing facility with its existing first lien lenders that would provide the Company with $50 million in new financing. Mission Coal’s petition lists between 1 and 50 creditors; estimated assets between $100 million and $500 million; and estimated liabilities between $100 million and $500 million.

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