Davis Polk is advising the lenders under a prepetition secured term loan credit facility in the chapter 11 cases of Cambrian Holding Company, Inc. and certain of its subsidiaries and affiliates (collectively, “Cambrian”). On June 16, 2019, Cambrian filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Eastern District of Kentucky, and a “first day” hearing was held on June 17, 2019. 

In the months leading up to the bankruptcy filing, the term lenders pursued state-law foreclosure proceedings and related actions in Kentucky court and also engaged in dual-track negotiations with Alliance Prime Associates, Inc., an affiliate of Cambrian’s surety bond provider, for the purchase and sale of the term loans. At the first day hearing, the term lenders and Alliance announced certain material terms of an agreement for the sale and assignment of 100% of the term loans for cash, plus certain additional protections for the term lenders pending consummation of the transaction.

Cambrian’s core business is producing and processing metallurgical coal and thermal coal for use by utility providers and industrial companies located primarily in the eastern United States and Canada. Cambrian began in 1991 and, over time, acquired various mines and mining-related assets from major coal corporations. By and/or through these operations, Cambrian supply different qualities of coal to its customers.

The Davis Polk restructuring team includes partner Brian M. Resnick and associate Christopher Robertson. The litigation team includes partner Elliot Moskowitz. The finance team includes partner Jinsoo H. Kim. Counsel Susan D. Kennedy provided real estate advice. All members of the Davis Polk team are located in the New York office.

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