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Rhino Resource Partners LP Voluntarily Files for Relief under Chapter 11
July 23, 2020
Source: GlobeNewswire
Rhino Resource Partners LP (OTC: RHNO) (“Rhino” or the “Partnership”) announced today that it, along with its subsidiaries and certain of its affiliates, has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Ohio. In connection with the filing, Rhino has obtained $11.75 million of post-petition financing and the support from a stalking horse bidder to acquire the company. Rhino intends to use the bankruptcy process to implement an orderly sale of substantially all of its assets in an effort to maximize value for all stakeholders and allow for the prospect of continued employment and business opportunities at its operating locations.
Rick Boone, Rhino’s chief executive officer, said, “Rhino has been taking steps to improve both the performance and financial strength of our business. While these strategies have gained positive momentum, they have not produced sufficient liquidity to continue operating our business and servicing our outstanding obligations. We are using Chapter 11 to maximize the value of our business and have entered into a stalking horse purchase agreement. The stalking horse bid is a baseline against which we will seek higher or otherwise better outcomes for the benefit of all of our stakeholders.”
The company has also reached an agreement to obtain a $11.75 million debtor-in-possession loan from its prepetition lenders, which is intended to provide Rhino with liquidity necessary to operate its business while it pursues a value-maximizing transaction through the Chapter 11 process.
Rhino filed a motion on July 22, 2020 to authorize the execution of the asset purchase agreement with the stalking horse bidder and approve its sale process. Interested parties will have an opportunity to submit higher or otherwise better offers through the court-supervised competitive bidding process. Rhino has retained Energy Ventures Analysis, Inc. as its financial advisor to assist with the sale process. Inquiries regarding the sale process should be directed to Seth Schwartz (email: schwartz@evainc.com) or Emily Medine (email: emedine@evainc.com).
As required by the Bankruptcy Code, Rhino is required to pay its costs of operation incurred after the petition date and is seeking court approval to:
- Continue employee wages and benefits without interruption; and
- Pay for goods and services provided to the company during the bankruptcy process.
Rhino has made customary filings with the court, including first-day motions, to help ensure an orderly transition into Chapter 11 while minimizing business disruption. The motions are expected to be addressed by the court soon. The company’s restructuring counsel is Frost Brown Todd LLC.
Court filings and other documents related to the reorganization proceedings are available on a separate website administered by the company's claims agent, Epiq Corporate Restructuring, LLC, at (855) 907-2152, https://dm.epiq11.com/Hopedale or https://www.ohsb.uscourts.gov//, the official Bankruptcy Court website.
As previously announced, Rhino terminated the registration of its common units under Section 12(g) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) and suspended its Securities and Exchange Commission reporting obligations under Section 15(d) of the Exchange Act, including its obligation to file Exchange Act reports such as Forms 10-K, 10-Q and 8-K.
About Rhino Resource Partners LP
Rhino Resource Partners LP is a diversified energy limited partnership that is focused on coal and energy related assets and activities, including energy infrastructure investments. Rhino produces metallurgical and steam coal in a variety of basins throughout the United States. Additional information regarding Rhino is available on its web site – RhinoLP.com.
Investor Contact:
Scott Morris
+1 859.519.3622
smorris@rhinolp.com
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