Laserfiche WebLink
Case 1:20-bk-12043 Doc 3 Filed 07/22/20 Entered 07/22/20 17:38:25 Desc Main <br /> Document Page 16 of 42 <br /> B. Efforts to Restructure and the Filing of These Chapter 11 Cases <br /> 33. The Debtors undertook various efforts to return to a positive cash flow, including: <br /> the suspension of distributions on common stock and subordinated units and, to the extent <br /> possible and economically feasible, engaging in optimal downsizing strategies, such as divesting <br /> certain mining operations. Notwithstanding these efforts, the Debtors have been unable to <br /> overcome the pressures placed on their profit margins from steadily declining coal prices (along <br /> with burdensome regulations and the accompanying decline in demand for coal), all of which <br /> have contributed to the Debtors' substantial negative cash flow. The current COVID-19 <br /> pandemic has also hampered the Debtors' operations, requiring the idling of many operations for <br /> an extended amount of time. <br /> 34. Recognizing the Debtors' declining cash flow, effective as of May 26, 2020, the <br /> Debtors appointed Thomas L. Fairfield as Chief Restructuring Officer("CRO") to assist with the <br /> Debtors' financial condition and liquidity situation. Since July 2018, Mr. Fairfield has provided <br /> strategic consulting services to business clients through Cambio Group LLC ("Cambio"). As the <br /> Debtors' CRO, under the oversight, approval and direction of an independent committee of the <br /> board of directors of the Rhino GP, the CRO provides advisory services supporting any <br /> restructuring activities including, but not limited to: (a) supporting the Debtors' liquidity, cash <br /> management process and budgeting process; (b) developing restructuring plans or strategic <br /> alternatives (including assisting in any sale process); (c) serving as the principal contact with the <br /> Debtors' secured creditors, unsecured creditors and other stakeholders with respect to any <br /> restructuring activities; (d) acting as the principal contact and providing any other services <br /> required in the preparation of or during any legal proceedings involving the Debtors in a United <br /> States court of law. As compensation for his role as CRO of the Debtors, Mr. Fairfield will be <br /> 16 <br />