LEXINGTON, KY, July 22, 2020 (GLOBE NEWSWIRE) -- Rhino Resource Partners LP (OTC: RHNO) (“Rhino” or the “Partnership”) announced today that it, along with its subsidiaries and certain of its affiliates, has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Ohio. In connection with the filing, Rhino has obtained $11.75 million of post-petition financing and the support from a stalking horse bidder to acquire the company. Rhino intends to use the bankruptcy process to implement an orderly sale of substantially all of its assets in an effort to maximize value for all stakeholders and allow for the prospect of continued employment and business opportunities at its operating locations.
Rick Boone, Rhino’s chief executive officer, said, “Rhino has been taking steps to improve both the performance and financial strength of our business. While these strategies have gained positive momentum, they have not produced sufficient liquidity to continue operating our business and servicing our outstanding obligations. We are using Chapter 11 to maximize the value of our business and have entered into a stalking horse purchase agreement. The stalking horse bid is a baseline against which we will seek higher or otherwise better outcomes for the benefit of all of our stakeholders.”
The company has also reached an agreement to obtain a $11.75 million debtor-in-possession loan from its prepetition lenders, which is intended to provide Rhino with liquidity necessary to operate its business while it pursues a value-maximizing transaction through the Chapter 11 process.
Rhino filed a motion on July 22, 2020 to authorize the execution of the asset purchase agreement with the stalking horse bidder and approve its sale process. Interested parties will have an opportunity to submit higher or otherwise better offers through the court-supervised competitive bidding process. Rhino has retained Energy Ventures Analysis, Inc. as its financial advisor to assist with the sale process. Inquiries regarding the sale process should be directed to Seth Schwartz (email: schwartz@evainc.com) or Emily Medine (email: emedine@evainc.com).
As required by the Bankruptcy Code, Rhino is required to pay its costs of operation incurred after the petition date and is seeking court approval to:
- Continue employee wages and benefits without interruption; and
- Pay for goods and services provided to the company during the bankruptcy process.
Rhino has made customary filings with the court, including first-day motions, to help ensure an orderly transition into Chapter 11 while minimizing business disruption. The motions are expected to be addressed by the court soon. The company’s restructuring counsel is Frost Brown Todd LLC.
Court filings and other documents related to the reorganization proceedings are available on a separate website administered by the company's claims agent, Epiq Corporate Restructuring, LLC, at (855) 907-2152, https://dm.epiq11.com/Hopedale or https://www.ohsb.uscourts.gov//, the official Bankruptcy Court website.
As previously announced, Rhino terminated the registration of its common units under Section 12(g) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) and suspended its Securities and Exchange Commission reporting obligations under Section 15(d) of the Exchange Act, including its obligation to file Exchange Act reports such as Forms 10-K, 10-Q and 8-K.
About Rhino Resource Partners LP
Rhino Resource Partners LP is a diversified energy limited partnership that is focused on coal and energy related assets and activities, including energy infrastructure investments. Rhino produces metallurgical and steam coal in a variety of basins throughout the United States. Additional information regarding Rhino is available on its web site – RhinoLP.com.
Forward Looking Statements
Except for historical information, statements made in this press release are “forward-looking statements.” All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Rhino expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are based on Rhino’s current expectations and beliefs concerning future developments and their potential effect on Rhino’s business, operating results, financial condition and similar matters. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Rhino will turn out as Rhino anticipates. Whether actual results and developments in the future will conform to expectations is subject to significant risks, uncertainties and assumptions, many of which are beyond Rhino’s control or ability to predict. Therefore, actual results and developments could materially differ from Rhino’s historical experience, present expectations and what is expressed, implied or forecast in these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the following: Rhino’s ability to successfully complete a sale process under Chapter 11; potential adverse effects of the Chapter 11 cases on Rhino’s liquidity and results of operations; Rhino’s ability to obtain timely approval of its motions in the Chapter 11 cases, and the outcome of the Chapter 11 cases generally; objections to Rhino’s sale process, debtor-in-possession financing order or other pleadings that could protract the Chapter 11 cases; employee attrition and Rhino’s ability to retain senior management and other key personnel during the Chapter 11 cases; the effects of the bankruptcy petitions on Rhino and on the interests of its various constituents, including holders of Rhino’s equity interests; the length of time that Rhino will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the proceedings; Rhino’s ability to comply with restrictions imposed by the debtor-in-possession financing and other financing arrangements; and increased administrative and legal costs related to the Chapter 11 process and other litigation and inherent risks involved in a bankruptcy process.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Rhino undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, unless required by law.
Investor Contact:
Scott Morris
+1 859.519.3622
smorris@rhinolp.com