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Business Bankruptcy Headlines for 12/12/2015

Midway Gold Emergency Motion Filed
Midway Gold filed with the U.S. Bankruptcy Court an emergency motion to revise the Court's previous order (a) approving an agreement for purchase and sale, (b) authorizing the sale of property of the estate and (c) authorizing payment of a broker's commission. The emergency motion explains, "The proposed revisions to the Sale Order include the following: Authorization of the title company to pay the net proceeds into the registry of the Court. The net proceeds will be released from the Court's registry upon motion by Debtors. Debtors are in the process of finalizing the stipulation with Jacobs, which will result in a substantial portion of the proceeds being released from the Court's registry. The remaining proceeds will be subject to the Halstead Lien pending resolution of that lien; and that the Revised Sale Order be entered on November 23, 2015, which is the date the Sale Order entered….Additionally, absent an order the closing will be delayed fourteen days from entry of the Revised Order because the title company will not insure over the 14 day appeal period. The above revisions are necessary to facilitate an expeditious closing of the Property, which is currently scheduled to occur on or before December 15, 2015."

Alpha Natural Resources Objections Filed
Multiple parties - including Alpha Natural Resources, its official committee of unsecured creditors, Citibank & Citicorp North America and the U.S. Trustee assigned to the case - filed with the U.S. Bankruptcy Court separate objections to the motion of certain equity security holders seeking appointment of an official committee of equity security holders. The Trustee argues, "By any realistic measurement, Alpha Natural Resources and its affiliated debtors are hopelessly insolvent and there is no realistic possibility for the recovery of equity holders in these cases. Since reaching $45 a share in 2011, Alpha's share prices have dropped to a current value of around $0.34 a share. In the months leading up to this bankruptcy, the stock prices traded so low that the company was involuntarily delisted from the New York Stock Exchange….All of this is, of course, occurring in a context in which the coal industry is suffering unprecedented losses and reduction and in which coal prices continue to plummet as demand shrinks and the expenses associated with production skyrocket. Based on all of these facts, the United State Trustee - the person Congress has charged in the first instance with making the decision as to the appropriateness of an Equity Committee - properly exercised her discretion to decline to further burden the creditors and the estate with the expenses of such a committee. Despite this, a group of nine shareholders (the 'Requesting Shareholders'), holding approximately 1% of Alpha's outstanding equity, has requested that the Court further deplete Alpha's resources to the tune of at least $75,000 a month for yet another set of professionals just to 'monitor and stay abreast of developments in these cases' and even more if they choose to participate in the cases in any meaningful way."

Boomerang Systems Extension Sought
Boomerang Systems filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including April 14, 2016 and June 13, 2016, respectively. The motion explains, "By granting the requested extension, the Debtors will have time to finalize a comprehensive and consensual plan of liquidation that will benefit all creditors. Conversely, termination of the Exclusive Periods could lead to the filing of multiple plans and a contentious conformation process resulting in increased administrative expenses and consequently diminishing returns to the Debtors' creditors. Moreover, it could significantly delay, if not completely undermine, the Debtors' ability to confirm any plan at all. Courts in this and other districts have granted similar or longer extensions of the Exclusive Periods in order to provide debtors with an adequate opportunity to develop a plan of reorganization." The Court scheduled a January 19, 2016 hearing to consider the extension motion, with objections due by December 30, 2015.

Walter Energy Objection Filed
The United Mine Workers of America filed with the U.S. Bankruptcy Court an objection to Walter Energy's motion for an order (i) authorizing the Debtors to (a) reject collective bargaining agreements, (b) implement final labor proposals and (c) terminate retiree benefits and (ii) granting related relief. The objection explains, "Having engaged in a hollow bargaining process, the Debtors seek relief in the Motion that allows for complete termination of the UMWA CBA. Retirees face a future life without promised health care, pension, and other benefits, including but not limited to the funding obligations to UMWA Retirees pursuant to the Coal Act, and the defined benefit multiemployer UMWA 1974 Pension Plan (the 'UMWA 1974 Pension Plan') obligations owed pursuant to the UMWA CBA. In contrast, (i) senior management received encouragement in the form of up to $2 million in KERP bonuses designed to extend beyond the proposed Sale closing - so promises of further employment; (ii) the First Lien Lenders will receive control over the Debtors' 'good assets'; and (iii) trade creditors will continue to benefit from a mining customer....Contrary to the suggestions made in the Motion, the UMWA consistently negotiated in good faith, and continued to do so with respect to the November Proposal by offering to allow JWR to terminate its obligations under the UMWA CBA effective once negotiations wrapped up with the Buyer and the union ratified a new collective bargaining agreement with the Buyer and the Sale closed….As a threshold matter, relief under sections 1113 and 1114 of the Bankruptcy Code is not appropriate here because the Debtors are selling substantially all of their assets and likely soon thereafter converting to a chapter 7 liquidation or proposing a liquidating plan, as opposed to reorganizing."

TransCoastal Chapter 11 Petition, Plan Filed
TransCoastal and affiliated Debtor CoreTerra Operating filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of Texas, lead case number 15-34956. The Company, which engages in the acquisition, exploration, development and production of oil and natural gas properties, is represented by Stephen M. Pezanosky of Haynes & Boone. Documents filed with the Court note, "As oil prices have declined and access to capital has deteriorated, many E&P companies have been forced to reduce their capital expenditure budgets, focus efforts on managing liquidity, and address outstanding debt obligations. TC-TX has not been spared from these same difficulties and as a result has seen reductions in operating cash flow and a deteriorating working capital position." The Company concurrently filed a Joint Prepackaged Plan of Reorganization and related Disclosure Statement. Under the Plan, approximately $21 million of loans and obligations outstanding under the Company's pre-petition loan agreement will be converted into (i) 100% of the new equity in the reorganized TC-TX, and (ii) 100% of the new exit facility term loan in full and final satisfaction of the claims, liens and rights of the senior lender against the Debtors arising under or in connection with the pre-petition loan agreement. General unsecured claims will be unimpaired, all pre-petition equity interests in TC-TX will be extinguished and existing equity will not receive or retain any property under the Prepackaged Plan.