Murray Energy Restructuring Consummated
9/17/2020

Davis Polk advised an ad hoc group of lenders (the “Ad Hoc Group”) to Murray Energy Corporation (together with certain of its subsidiaries, “Murray”), who held approximately $1 billion of secured debt under Murray’s prepetition superpriority term loan facility, in Murray’s chapter 11 restructuring. On September 16, 2020, substantially all of the assets of Murray were sold to American Consolidated Natural Resources, Inc., a special purpose entity established by the Ad Hoc Group, under the terms of Murray’s plan of reorganization (the “Plan”), which was confirmed by the United States Bankruptcy Court for the Southern District of Ohio, Western Division on August 31, 2020 (the “Confirmation Order”).

At the outset of Murray’s chapter 11 cases, the Ad Hoc Group and certain other parties entered into a comprehensive restructuring support agreement with Murray and provided $350 million in debtor-in-possession financing. The Confirmation Order approved a $1.2 billion credit bid of the Ad Hoc Group and other superpriority lenders, who, together with certain other prepetition lenders, will own 100% of the common equity interests in the reorganized Murray upon emergence from chapter 11. In addition, upon emergence, the Ad Hoc Group and other DIP Lenders will receive their pro rata share of a senior secured term loan facility in the approximate amount of $410 million and preferred equity interests with liquidation preference in an initial amount of $125 million.

Based in St. Clairsville, Ohio, Murray was the largest privately owned coal company in the United States. Murray owned and operated mines across the Northern, Central and Southern Appalachia Basins (located in Ohio, West Virginia, eastern Kentucky and Alabama), the Illinois Basin (located in Illinois and western Kentucky) and the Uintah Basin (located in Utah).

The Davis Polk restructuring team included partner Damian S. Schaible and associate Adam L. Shpeen. The litigation team included partner James I. McClammy and associate Miles Christian Babin. Partner William L. Taylor and counsel Ajay B. Lele provided mergers & acquisitions advice. The finance team included partner Monica Holland and counsel Mayer J. Steinman. Partner Lucy W. Farr provided tax advice. Counsel David A. Zilberberg provided environmental advice. Members of the Davis Polk team are located in the New York office.