The plan of reorganization is expected to deliver a material recovery to general unsecured creditors.
Milbank, Tweed, Hadley & McCloy LLP acted as counsel to the Official Committee of Unsecured Creditors in the chapter 11 cases of Alpha Natural Resources, Inc. and 148 of its subsidiaries (collectively, “Alpha” or the “Debtors”). As of the commencement of the chapter 11 cases on August 3, 2015, Alpha was among the largest domestic producers of coal by volume in the United States, with billions of dollars of total stated assets and liabilities, and consolidated 2014 revenues of approximately $4.3 billion. Alpha was also the nation's leading supplier and exporter – and one of the world's largest suppliers – of metallurgical coal for steel producers and a major supplier of steam coal to electric utilities and manufacturing industries across the country.
Milbank advised, and negotiated on behalf of the Committee, in connection with a myriad of complex and disputed issues that arose in the chapter 11 cases, including with respect to (i) the Debtors’ proposed postpetition financing, which was provided by certain of the Debtors’ prepetition first lien lenders, (ii) settlements of asserted claims and related disputes, including two material, plan-related settlements between the Debtors and their prepetition first lien lenders, (iii) the Debtors’ proposed plan of reorganization, and (iv) various other financings, asset dispositions, and other transactions.
The Committee reached a settlement with the Debtors, the Debtors’ prepetition first lien lenders, and the Debtors’ prepetition second lien noteholders with respect to various plan-related issues. The settlement has resulted in a plan of reorganization that is expected to deliver a material recovery to general unsecured creditors. The plan was accepted by all classes entitled to vote and was confirmed on July 7, 2016. The plan became effective on July 26, 2016.
The Debtors also estimate that the approximate value of the assets distributable to stakeholders pursuant to their proposed plan, including in part to holders of allowed general unsecured claims, is $700 million to $1.3 billion.
Milbank’s team on behalf of the Committee was led by Dennis Dunne (Financial Restructuring) and Evan Fleck (Financial Restructuring), Abhilash Raval (Financial Restructuring), Andrew Leblanc (Financial Restructuring and Litigation), David Cohen (Litigation), Aaron Renenger (Litigation), Russell Kestenbaum (Tax), Robert Kennedy (Corporate), Matthew Ahrens (Corporate), Joel Krasnow (Executive Compensation and Employee Benefits), and Manan (Mike) Shah (Executive Compensation and Employee Benefits), along with special counsel Max Goodman (Tax), and associates Eric Stodola (Financial Restructuring), Justin Han (Financial Restructuring), Samir Vora (Litigation), Erin Culbertson (Litigation), James Burke (Litigation), Dawn Harrop (Litigation), Erika Hauser (Tax), Meghan Gabriel (Corporate), Nicholas DeLuca (Executive Compensation and Employee Benefits), and Christina Skaliks (Executive Compensation and Employee Benefits).
