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