Blackhawk Mining Secures Confirmation of Chapter 11 Plan

Davis Polk is advising an ad hoc group of first- and second-lien lenders to Blackhawk Mining, LLC, consisting of Knighthead Capital Management, Redwood Capital Management and Solus Alternative Asset Management, in connection with the restructuring of Blackhawk and certain of its affiliates. On July 15, 2019, Blackhawk entered into a restructuring support agreement with over 90% of its lenders (including the ad hoc group) and more than 80% of its equity holders and commenced solicitation on a plan of reorganization.

On August 28, 2019, Blackhawk Mining’s plan of reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware. Under the plan, the holders of Blackhawk’s first-lien term loans will exchange their debt for new debt and equity of the reorganized company, while holders of Blackhawk’s second-lien term loans will exchange their debt for equity of the reorganized company. 

Blackhawk is a privately owned coal mining and marketing company headquartered in Lexington, Kentucky. The company operates 10 mining complexes across West Virginia and Kentucky with approximately 2,800 employees. Blackhawk primarily sells metallurgical coal to a diverse array of domestic and international steel producers and industrial customers. 

The Davis Polk restructuring team includes partner Brian M. Resnick and associate Dylan A. Consla. The finance team includes partner Jinsoo H. Kim and counsel David Hahn. The corporate team includes partner Stephen Salmon and associate Shanu Bajaj. Partners Lucy W. Farr and Patrick E. Sigmon and associate Elina Khodorkovsky are providing tax advice. Partner Edmond T. FitzGerald is providing executive compensation advice. Members of the Davis Polk team are based in the New York and Northern California offices.