This announcement contains inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014 which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018.
22 May 2024
Bens Creek Group
plc
("Bens Creek" or the
"Company")
Intention to appoint
administrators
Corporate
update
and
Resignation of Nominated
Adviser
Further to the Company's announcements
on 16 May 2024 and 21 May 2024, Bens Creek Group plc (AIM:BEN), the
owner of a metallurgical coal mine in North America supplying the
steel industry, announces that the Board of the Company (the
"Board") has, on 21 May
2024, resolved to file a notice to appoint administrators of the
Company.
On 15 May 2024, the Company received a
redemption notice (the "ACAM
Redemption Notice") from ACAM GP Limited, in its capacity as
general partner of ACAM LP ("ACAM"). The ACAM Redemption Notice was
for the redemption of the principal and outstanding interest
pursuant to the c.$7.57 million of unsecured loan notes (the
"ACAM Loan Notes") the
Company issued to ACAM. Furthermore, on 20 May 2024, the Company
received a redemption notice (the "Avani Redemption Notice") from Avani
Resources Pte Ltd ("Avani"), the Company's largest
shareholder. The Avani Redemption Notice is for the redemption of
the outstanding principal and accrued interest pursuant to the
c.$6.5 million of unsecured loan notes (the "Avani Loan Notes") the Company issued
to Avani in July 2023. The Company is severely cash constrained and
due to this cash constraint, the Company is unable to repay the
amounts due to ACAM and Avani under the ACAM Loan Notes and
the Avani Loan Notes.
Therefore, after detailed
consideration of the Company's current financial situation, and
absent any viable proposals to deliver a stable solution to the
challenges faced by the Company, the Board has now concluded that
the Company should consider being placed into administration or
undertake an alternative insolvency process in order to protect the
interests of creditors and other stakeholders.
In relation to the ongoing Chapter 11 bankruptcy
process for the Company's wholly owned US subsidiaries, Ben's Creek
Operations WV LLC, Ben's Creek Carbon LLC and Ben's Creek Land WV
LLC (together, the "Chapter 11
Companies"), a further court hearing will be held on 6 June
2024 to consider the terms of a final debtor-in-possession
financing loan from Avani (the "Avani DIP Facility") which is expected
to be in the quantum of US$8.865 million. It is the intention for
the proceeds of the Avani DIP Facility to be utilised to conduct
and pursue a sale and liquidation process of the Chapter 11
Companies' assets to be completed pursuant to section 363 of the US
Bankruptcy Code (the "Section 363
Sale").
It is not known at present how much, if any,
value will be returned to shareholders following any administration
or alternative insolvency process being undertaken for the Company
or the conclusion of the Chapter 11 process for the Chapter 11
Companies.
The Company's ordinary shares remain
suspended from trading on AIM.
Resignation of Nominated Adviser
As a result of the Company's intention
to appoint administrators, Allenby Capital Limited has informed the
Company of its resignation as Nominated Adviser and Joint Broker to
Bens Creek with immediate effect. Pursuant to AIM Rule 1, if
a replacement Nominated Adviser is not appointed within one month
from the resignation of the current Nominated Adviser, the
admission of the Company's shares to trading on AIM will be
cancelled. The Company has no current intention of appointing a
replacement Nominated Adviser.
For
further information please contact:
Bens
Creek Group plc +44
(0) 204 558 2300
Adam Wilson, CEO
Peter Shea, Chief of Staff
WH
Ireland Limited (Broker)
Harry Ansell / Katy Mitchell
+44
(0) 207 220 1666