REG - Bens Creek Group PLC - Update on the Group's Chapter 11 cases

Bens CreekAnnouncement

09/05/2024 18:30

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RNS Number : 8790N  Bens Creek Group PLC  09 May 2024

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was deemed by the Company to constitute inside information for the purposes of
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With the publication of this announcement, this information is now considered
to be in the public domain.

 

 

9 May 2024

Bens Creek Group plc

("Bens Creek" or the "Company" or the "Group")

 

Update on the Group's Chapter 11 cases

 

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in
North America supplying the steel industry, provides the following update on
the court hearing held yesterday (the "Hearing") in the United States of
America ("US") Bankruptcy Court for the Southern District of West Virginia
(the "Court"). The Hearing was to consider matters pertaining to the ongoing
Chapter 11 cases 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").

 

In the days leading up to the Hearing, an amended debtor-in-possession
financing (the "New Avani DIP Facility") was put forward to the Court by Avani
Resources Pte Ltd ("Avani"), the Company's largest shareholder. To allow
sufficient time for the Court to consider the New Avani DIP Facility, and to
consider any other new and/or alternative debtor-in-possession financing
facilities put forward to the Court, a further court hearing will be held on 6
June 2024 (the "Further Hearing").

 

In the interim, to enable the Chapter 11 Companies to fund their operations
and meet their payment obligations between now and the Further Hearing, the
Court has given interim acceptance of the New Avani DIP Facility and
consequently allowed the Chapter 11 Companies to drawdown up to $2 million of
the New Avani DIP Facility (the "Interim Drawdown"). The final terms of the
New Avani DIP Facility are currently being negotiated by Avani and legal
counsel to the Chapter 11 Companies. Further announcements will be made by the
Company in relation to the New Avani DIP Facility and the Interim Drawdown at
the appropriate time.

 

At the current time, through management of its creditors, Bens Creek Group Plc
has extended its cash runway position and at the current time has sufficient
cash to meet its immediate day-to-day working capital obligations. In the
absence of any additional funds being received or a change to its financial
position, the Group now has an expected cash runway through to the end of May
2024.

 

Further announcements will be made at the appropriate time.

 

For further information please contact:

Bens Creek Group plc
                                                                                           +44
(0) 204 558 2300

Adam Wilson, CEO

Peter Shea, Chief of Staff

 

Allenby Capital Limited (Nominated Adviser and Joint Broker)
               +44 (0) 203 328 5656

Nick Athanas / Nick Naylor / George Payne (Corporate Finance)

Kelly Gardiner / Guy McDougall (Sales and Corporate Broking)

 

WH Ireland Limited (Joint Broker)

Harry Ansell / Katy Mitchell
                                                                                 +44
(0) 207 220 1666

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