The U.S. Bankruptcy Court for the Eastern District of Missouri has issued an order confirming Foresight’s Chapter 11 plan of reorganization. The plan provides for the reduction of more than $1 billion of Foresight’s existing indebtedness and the elimination of approximately $94 million of Foresight’s anticipated annual cash interest payments, plus additional reductions in annual cash flow expenses through modified contractual terms with key logistics, mineral interest and vendor counterparties. Holders of Foresight’s limited partnership units will not receive any recovery under the plan.
Additionally, Foresight will emerge from Chapter 11 with only $225 million in secured exit facility loans, $75 million of which will convert to equity 60 days following the closing of the exit facility, and will have approximately $60 million in cash liquidity.
CEO Robert D. Moore said the company was able to achieve confirmation within four months of entering Chapter 11.
“We are working expeditiously to timely implement the plan, and we look forward to emerging from the Chapter 11 process in the coming weeks,” Moore said.
A large Illinois Basin coal operator, Foresight operates the Williamson Energy, Sugar Camp Energy, Macoupin Energy and Hillsboro Energy complexes and the Sitran River Terminal on the Ohio River.