Foresight Energy LP announced it has consummated its Chapter 11 plan of reorganization. The remaining Foresight assets were transferred to Foresight Energy Operating LLC, which is owned by Foresight Energy Resources LLC.
Pursuant to the plan, Foresight discharged more than $1 billion of debt and eliminated $94 million of anticipated annual cash interest payments, plus additional reductions in annual cash flow expenses through modified contractual terms with key logistics, mineral interest and vendor counterparties. Holders of the old Foresight limited partnership units received no recovery under the Plan. Foresight has emerged from Chapter 11 with only $225 million in secured exit facility loans, $75 million of which will convert to equity 60 days following the closing of the exit facility, and will have approximately $65 million in cash liquidity.
“We are thankful to our many stakeholders. With their cooperation, we have been able to achieve confirmation within four months of entering Chapter 11. I count this as a tremendous accomplishment,” said Robert D. Moore, CEO, Foresight Energy. “We are working expeditiously to timely implement the plan, and we look forward to emerging from the Chapter 11 process.”
A large Illinois Basin coal operator, Foresight operates three longwall mining complexes with four longwall mining systems and the Sitran river terminal on the Ohio River.