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2016-04-25_GENERAL DOCUMENTS - C1992081 (12)
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2016-04-25_GENERAL DOCUMENTS - C1992081 (12)
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Last modified
8/24/2016 6:21:07 PM
Creation date
4/26/2016 1:13:58 PM
Metadata
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Template:
DRMS Permit Index
Permit No
C1992081
IBM Index Class Name
General Documents
Doc Date
4/25/2016
Doc Name
Motion of the Debtors and Debtors in Possession Pursuant to Sections
From
United State Bankruptcy
To
DRMS
Permit Index Doc Type
General Correspondence
Email Name
MPB
JRS
JHB
Media Type
D
Archive
No
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Case 16-42529 Doc 28 Filed 04/13/16 Entered 04/13/16 11:32:40 Main Document <br />Pg 10 of 31 <br />Supplier to ship goods or provide services to the Debtors could have a deleterious impact on the <br />Debtors' ability to successfully transition into these chapter 11 cases and, ultimately, to undertake <br />a successful reorganization. The absence of any one of these Essential Suppliers' goods or <br />services could interrupt coal production and cause costly delays in the delivery of coal to <br />customers. As a result, the Debtors could suffer reduced sales, reduced cash flow and a loss of <br />customer confidence. Moreover, some of the Debtors' Essential Suppliers may have experienced <br />losses in other recent coal industry bankruptcies and may be (a) aware of their market power and <br />their importance to the Debtors' business operations and (b) educated regarding their rights in the <br />chapter I I context. This increased awareness and sophistication combined with previous losses <br />may make the Essential Suppliers particularly unwilling to work with or supply the Debtors <br />without receiving payment for the prepetition goods and services supplied to the Debtors. <br />22. Further, certain of the Essential Suppliers may be in precarious financial <br />situations and highly dependent upon the Debtors for their continued viability. With limited or <br />no access to additional capital, the nonpayment of the Essential Supplier Claims or 20 -Day <br />Administrative Claims could result in some of the Essential Suppliers suffering work stoppages <br />or other business disruptions and might ultimately result in such vendors ceasing operations <br />altogether or filing insolvency proceedings. If that were to occur, the Debtors could potentially <br />suffer damaging interruptions in their supply of essential goods and services. <br />23. As detailed in the Supporting Affidavit, the Debtors' management and employees, <br />in consultation with their professionals, have held numerous internal meetings and have <br />exercised high levels of care in reviewing the facts and circumstances of their Essential Suppliers. <br />As a result of these meetings and analysis, the Debtors have identified the vendors (a) that would <br />constitute Essential Suppliers under the descriptions set forth above and (b) the payment of <br />-10- <br />
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