Milbank has successfully represented the Ad Hoc Crossover Group in the chapter 11 cases of Foresight Energy LP and its affiliated debtors. Foresight is a leading producer and marketer of thermal coal controlling nearly 2.1 billion tons of coal reserves in the Illinois Basin.

On March 10, 2020, after reaching a global restructuring support agreement with most of its first- and second-lien debtholders, Foresight filed voluntary petitions for chapter 11 relief in the US Bankruptcy Court for the Eastern District of Missouri.

Foresight obtained confirmation of its chapter 11 plan on June 23, 2020. The Plan provides for the reduction of over $1 billion of Foresight’s existing indebtedness, the conversion of such debt claims into equity in Reorganized Foresight, and allows Foresight to emerge from chapter 11 with $225 million in secured exit facility loans funded in part by the Ad Hoc Crossover Group, $75 million dollars of which will convert to equity 60 days following the closing of the Exit Facility.

Foresight is expected to emerge from bankruptcy on June 30, 2020.

The Milbank team was led by Financial Restructuring partner Dennis Dunne and associate Parker Milender.

Originally published by Milbank, on June 2020