3:45 | 01.07.2020
Foresight Announces Implementation of Reorganization Plan
Foresight Energy LP (“Old Foresight”) announced today that it has consummated its chapter 11 plan of reorganization (the “Plan”).
In connection with consummation of the Plan on June 30, 2020 (the “Effective Date”), all of Old Foresight’s assets with exception of Foresight Energy LP, Foresight Energy GP LLC, and Foresight Energy LLC (but otherwise including such entities’ assets) were transferred to Foresight Energy Operating LLC, a newly formed Delaware limited liability company that is wholly-owned by Foresight Energy Resources LLC, a Delaware limited liability company. Foresight Energy LP, Foresight Energy GP LLC, and Foresight Energy LLC will be dissolved. Foresight Energy Resources LLC (together with its direct and indirect subsidiaries, “Foresight”) is the new parent company for Old Foresight’s non-dissolving subsidiaries and go-forward business.
Pursuant to the Plan, Foresight discharged over $1 billion of indebtedness and eliminated approximately $94 million of anticipated annual cash interest payments, plus additional reductions in annual cash flow expenses through modified contractual terms with key logistics, mineral interest, and vendor counterparties. Holders of Old Foresight’s limited partnership units received no recovery under the Plan. Additionally, pursuant to the Plan, Foresight has emerged from chapter 11 with only $225 million in secured exit facility loans (the “Exit Facility”), $75 million of which will convert to equity 60 days following the closing of the Exit Facility, and will have approximately $65 million in cash liquidity.
“We are thankful to our many stakeholders, including our creditors, employees, customers, vendors, trade creditors, and key contract counterparties, for their continued support. With their cooperation, we have been able to implement our reorganization plan within four months of entering chapter 11. As a result of this support, we have achieved a capital structure that provides our very productive and low cost mining operations the ability to aggressively compete domestically and globally in a very competitive coal market. We look forward to the future under our new ownership and capital structure,” said Robert D. Moore, Chief Executive Officer.
Foresight’s Plan and the order of the Court confirming the Plan were previously provided in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission (the “SEC”) on June 24, 2020, which can be viewed on the SEC’s website at http://www.sec.gov. Additional information is available by calling (833) 991-0977 (toll free) or (503) 597-7679 (international). Court filings and other information related to the court-supervised proceedings are available at a website administered by Foresight’s claims agent, Prime Clerk LLC, at https://cases.primeclerk.com/foresightenergy.
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