Prior to publication, certain information contained within this
announcement was deemed by the Company to constitute inside
information for the purposes of Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310. 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
