Bens Creek Shareholder MBU Capital Calls Meeting to Assess Chapter 11 Options
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Bens Creek Group’s major shareholder MBU Capital has called a general meeting to discuss options for the cash-strapped coal miner and whether Chapter 11 administration for its U.S. subsidiary is the right course.
MBU is the company’s second-largest shareholder behind Indian group Avani with a 22.08 percent stake.
In a statement, Bens Creek said that MBU’s correspondence states that the general meeting is to be convened to allow shareholders to discuss the operational and strategic challenges facing the company.
Bens Creek’s board believes that the Chapter 11 cases underway in the U.S. Bankruptcy Court for the Southern District of West Virginia are in the group’s best interests.
In a separate statement, Bens Creek added that the Chapter 11 companies have entered into a term sheet for a debtor-in-possession financing (DIP) facility.
Avani has filed a DIP term sheet with the court for up to US$14.5 million. This term sheet is now binding on Avani but is not binding on the Chapter 11 companies until initiated by a hearing.
A court hearing to consider the Avani DIP Facility is expected to be held by the end of April 2024.
Source: Proactive Investors
Bens Creek Group is an AIM listed holding company set up to own and operate metallurgical coal mines in North America. The company owns the Ben’s Creek mining project in West Virginia.
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