Foresight Energy LP (fka FELPQ)

[StockRoomBully]

Murray Energy Holding - Foresight survives interest debt. Imo Hhhmmm


Theres a strategy folks see dd

"The position of Holding Company as the Guarantor for the Debts of Subsidiary company"

"The existence of holding company as the guarantor in the agreement between subsidiary
company and the third party can cause legal impact for holding company as the guarantor from
subsidiary company in the loan agreement.

Holding company as the guarantor from subsidiary
company has the responsibility to pay the debts of debtor to creditor if the debtor experiences default.

Thus, holding company also becomes the debtor in staging agreement.

Holding company which acts as
the guarantor of subsidiary company is responsible to pay after the first debtor’s debts was default and
its properties have been confiscated and auctioned but the result is proven unable to pay the debts, or
the debtor was default with no property.

Besides, as the consequence of its position as debtor, as the
guarantor of subsidiary company, it can be bankrupted by the creditor.

Based on this explanation, the legal connection between holding company and subsidiary
company is merely between shareholder and subsidiary company.

The position of company as the
shareholder can be changed to become the guarantor and debtor if the subsidiary company breaching
the contract and its assets is not enough to pay the debts, making the assets of holding company
becomes the guarantee of debts made by subsidiary company."

Under the plan filed Tuesday in the US Bankruptcy Court for the Southern District of Ohio, a plan administrator would be appointed to wind down Murray Energy's and its certain debtor subsidiaries' assets, resolving any disputes, making final payments and liquidating the company.

The plan also would allow superpriority lenders to direct the superpriority agent to form a new entity, "Murray NewCo," to act as a stalking horse bidder on the companies' asset sale and submit an offer. If there are no higher bids on the assets, Murray NewCo would take over the assets.

"The Debtors' proposed Plan will allow the Debtors to emerge as a going concern, ensuring that the Debtors' assets will continue operating and providing employment to thousands of employees," court documents state.

https://www.spglobal.com/platts/en/market-insights/latest-news/coal/120619-murray-energy-submits-plan-to-sell-off-assets-wind-down-estate-in-restructuring