Cambrian Coal granted bankruptcy court OK to sell company assets

By Caroline Salls

Pittsburgh, Sept. 26 – Cambrian Coal LLC received court approval of the sale of substantially all of its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Kentucky.

Cambrian entered into an asset purchase agreement on Sept. 20 with Richmond Hill Capital Partners, LP, Essex Equity Joint Investment Vehicle, LLC and Alliance Prime Associates, Inc.

As consideration for the assets, the buyers agreed to cancel a $15 million portion of Cambrian’s debtor-in-possession financing obligations, to pay an amount equal to the sum of a $2 million administrative priority claims escrow amount, a $6.58 million professional fees escrow amount, a $475,000 wind-down escrow amount and a $2 million cash amount and to assume liabilities related to the assets, including cure costs.

Cambrian is a Belcher, Ky.-based coal company. The company filed bankruptcy on June 16 under Chapter 11 case number 19-51200.

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