Cambrian Coal Corp. announced a successful bidder for its Premier Elkhorn coal mining assets and told a bankruptcy court that it was reopening the auction process for its Perry County coal assets in Kentucky.
Pristine Clean Energy LLC successfully bid for the Premier Elkhorn coal mining assets, Cambrian wrote in a filing with the U.S. Bankruptcy Court for the Eastern District Of Kentucky. A joint venture of Richmond Hill Capital Partners LLC, Essex Equity Joint Investment Vehicle LLC and Alliance Prime Associates won the bid on the properties, assets or rights that remain following the closing of Cambrian's sale of the Premier Elkhorn and Perry County coal assets.
The Premier Elkhorn operations include the Bevins Branch surface mine and the Renaissance underground mine in Kentucky. As part of the transaction, Pristine Energy is accepting liabilities associated with the assets and providing the sellers $1.00 in "immediately available funds."
The agreement also stipulates that the buyer will offer employment to as many of the employees at the Premier Elkhorn operations as deemed necessary and hire employees that accept the offer. The agreement includes a provision for a 2% overriding royalty arrangement with Richmond Hill, Essex Equity and Alliance Prime, which provided the company with its debtor in possession financing.
The aggregate consideration provided by Richmond Hill, Essex Equity and Alliance Prime for the remaining Cambrian assets includes cancellation of $15 million in debtor in possession financing obligations; payment of administrative priorities, professional fees and wind-down costs; and assumption of liabilities including cure costs. A $2 million good faith deposit was put into an escrow account to provide Cambrian with funds immediately available for operational expenses.
Since the company filed for a bankruptcy reorganization, several creditors have filed objections to the company's "hurried process" to sell its assets.
Cambrian filed a separate notice that it would reopen the bidding process for its Perry County coal mining assets Sept. 23 at 2 p.m. ET. A sale hearing regarding the successful bids will be held Sept. 24 at 9 a.m. ET.
