REG - Bens Creek Group PLC - Bens Creek commences Chapter 11 cases

Bens CreekAnnouncement

15/04/2024 16:30

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RNS Number : 6808K  Bens Creek Group PLC  15 April 2024

Prior to publication, certain information contained within this announcement
was deemed by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
With the publication of this announcement, this information is now considered
to be in the public domain.

 

15 April 2024

Bens Creek Group plc

("Bens Creek" or the "Company" or the "Group")

 

Bens Creek commences Chapter 11 cases

 

Further to the Company's announcement released on 12 April 2024, Bens Creek
Group plc (AIM:BEN), the owner of a metallurgical coal mine in North America
supplying the steel industry, announces that its wholly owned US subsidiaries,
Ben's Creek Operations WV LLC, Ben's Creek Carbon LLC ("BC Carbon") and Ben's
Creek Land WV LLC (together, the "Chapter 11 Companies"), have all commenced
Chapter 11 cases in the United States of America ("US") Bankruptcy Court for
the Southern District of West Virginia (the "Court") and lodged the necessary
filings with the Court to commence the Chapter 11 process. A Court hearing is
expected to be held this week to consider the commencement of Chapter 11.

 

It is the intention for the Chapter 11 Companies to enter the Chapter 11 cases
with commitment for a debtor-in-possession financing facility ("DIP") from
Avani Resources Pte Ltd ("Avani"), the Company's largest shareholder, which
will help ensure Bens Creek's operations continue in the ordinary course while
Bens Creek implements its reorganisation. The Company is in advanced
discussion on the terms of the DIP, which will be a related party transaction
pursuant to Rule 13, and once it is executed a further announcement will be
made.

 

The Chapter 11 Companies expect to file a proposed plan of reorganisation (the
"Plan") with the Court in due course and to meet the necessary requirements to
emerge from Chapter 11 and the Board believe a financial restructuring is in
the best interests of the Group and its stakeholders. There is no guarantee of
any recovery for holders of existing equity interests.

 

Chapter 11 is a court-supervised process that will provide a forum for
efficient reorganisation of the Group's business and balance sheet. The
Chapter 11 Companies will remain in possession and control of their assets,
existing management and the Board of Directors will stay in control of the
business and the Group's operations will be allowed to continue uninterrupted.
It is anticipated that the Chapter 11 Companies will remain in Chapter 11 for
a period of up to 90 days.

 

Upon filing for relief under Chapter 11, Chapter 11 Companies will benefit
from an "automatic stay" against any action to litigate or collect a
pre-petition claim. Bens Creek expects to operate its business as usual
throughout this process. As announced by the Company on 12 April 2024 the
Company's mining operations are currently being operated on a care and
maintenance basis.

 

In conjunction with the filing of the Chapter 11 cases, Chapter 11 Companies
has filed certain customary "first day" motions to obtain the requisite court
authority for the Group to continue operating its businesses in the ordinary
course without disruption.

 

The Chapter 11 Companies own the Company's mining operations in West Virginia,
US and the Group has no other material assets or liabilities other than the
ongoing running costs for an AIM quoted plc. These include a small number of
employees in the UK, including the Group's UK finance function, and advisory
costs. Bens Creek Group plc has debts owed to it by BC Carbon and it is
hopeful of receiving some funds owed to it as part of any restructuring under
Chapter 11 however there can be no guarantee of any such outcome.

 

At the current time, Bens Creek Group plc has sufficient cash to meet its
immediate day-to-day working capital obligations. However, in the absence of
any additional funds received that it is due from BC Carbon, or any further
funds being received or change to its financial position, the Group has an
expected cash runway through to mid-May 2024.

 

Further announcements will be made at the appropriate time.

 

For further information please contact:

Bens Creek Group plc
                                                +44
(0) 204 558 2300

Adam Wilson, CEO

Peter Shea, Chief of Staff

 

Allenby Capital Limited (Nominated Adviser and Joint Broker)
               +44 (0) 203 328 5656

Nick Athanas / Nick Naylor / George Payne (Corporate Finance)

Kelly Gardiner / Guy McDougall (Sales and Corporate Broking)

 

WH Ireland Limited (Joint Broker)

Harry Ansell / Katy Mitchell
                                                                                 +44
(0) 207 220 1666

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