Blackhawk Mining’s Plan of Reorganization Approved by Bankruptcy Court
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Blackhawk Mining LLC announced Wednesday that its Plan of Reorganization has been approved by Judge Silverstein in the U.S. Bankruptcy Court of Delaware.
The company is expected to emergence from bankruptcy as soon as early September.
This will eliminate more than 60 percent of Blackhawk’s total debt and provide for more than $50 million in incremental liquidity.
Also, the restructuring transaction will be effectuated with no disruption to the company’s employees, vendors, customers or landlords.
Blackhawk officials agreed to the terms of the plan of reorganization which allowed the company to obtain plan confirmation in only 40 days.
Under the plan, Blackhawk’s $639 million first-lien term loan will be discharged and lenders will receive 71 percent of the company’s equity and a newly issued $375 million first-lien term loan.
Blackhawk’s $318 million second-lien term loan will also be discharged and lenders will receive 29 percent of the company’s equity.
Source: WYMT
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