Lighthouse Resources files for bankruptcy, cites impact of Covid-19

By Sarah Lizee

Olympia, Wash., Dec. 3 – Lighthouse Resources Inc. and 13 affiliates filed Chapter 11 bankruptcy on Thursday in the U.S. Bankruptcy Court for the District of Delaware.

“In light of the challenging market conditions and other impacts on our business from Covid-19, we have been required to reduce costs and reorganize our business resulting in the reduction of our workforce in Montana,” Everett King, Lighthouse’s chief executive officer, said in a Thursday press release.

“We are deeply saddened by this impact on individuals, families and communities. A court-supervised reorganization process is necessary for Lighthouse and its stakeholders and we have no alternative.”

Upon approval by the court, cash-on-hand and cash generated from the company’s ongoing operations will be used to support the business during the court-supervised process.

Court-supervised operations will continue at reduced levels at the Decker mine in Montana. The Chapter 11 reorganization also includes Millennium Bulk Terminals in Longview, Wash., where operations will continue without reduction.

Interested parties will have the opportunity to acquire Millennium’s rights under the court supervised process. The company said it has already received a high level of interest from prospective purchasers.

Lighthouse has a joint venture interest in Black Butte Coal Co. in Wyoming. Black Butte has not filed a Chapter 11 petition and will continue with normal operations.

Lighthouse said it will continue serving customers in the ordinary course while securing protections that will give it time to consider options for the best path forward.

The company has filed a number of customary motions seeking court authorization to support its business operations during the court-supervised process, including the payment of employee wages, salaries and health and disability benefits. Lighthouse said it expects to receive court approval for these requests shortly.

For goods and services provided post-Chapter 11 filing, the company intends to pay suppliers in full under normal terms.

Lighthouse’s board of directors has appointed Robert Novak as chief restructuring officer. BDO Consulting is serving as the company’s restructuring adviser, and Jackson Kelly PLLC is serving as its restructuring counsel.

The company listed $100 million to $500 million in both assets and liabilities.

Its largest unsecured creditors are Big Horn County Treasurer, based in Hardin, Mont., with a $6.2 million government contracts claim, Montana Department of Revenue, based in Helena, Mont., with a $4.48 million government contracts claim, Office of Natural Resources, based in Denver, with a $3.3 million government contracts claim, ICF Jones & Stokes, Inc., based in Chicago, with a $1.8 million professional services claim, and RCF Management Invoices, based in Denver, with a $1.26 million lender/owner claim.

Lighthouse Resources is a South Jordan, Utah, owner and operator of thermal coal mines. The company filed bankruptcy under Chapter 11 case number 20-13056.

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