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2020-07-24_GENERAL DOCUMENTS - C1980004
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2020-07-24_GENERAL DOCUMENTS - C1980004
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Last modified
1/8/2025 6:21:48 AM
Creation date
7/27/2020 10:36:57 AM
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DRMS Permit Index
Permit No
C1980004
IBM Index Class Name
General Documents
Doc Date
7/24/2020
Doc Name Note
Case No. 20-12043 (GRH) Hopedale Mining LLC
Doc Name
Notice of Agenda For Expedited Virtual Hearing on the First Day Motions Scheduled for July 24, 2020
To
DRMS
Permit Index Doc Type
General Correspondence
Email Name
JRS
JDM
GRM
CMM
CCW
Media Type
D
Archive
No
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Case 1:20-bk-12043 Doc 3 Filed 07/22/20 Entered 07/22/20 17:38:25 Desc Main <br /> Document Page 26 of 42 <br /> 60. The Debtors also seek authority to pay, subject to and in compliance with any DIP <br /> Order, the pre-petition charges of the Service Providers. In order to ensure safe and orderly <br /> working conditions at their mines, the Debtors must repair or replace machine parts and make <br /> on-the-spot repairs to mining machinery on little or no notice. Any disruption in the flow of such <br /> parts or services would immediately affect on-time delivery of coal, which is a key component of <br /> customer satisfaction. Further, any disruption in the flow of parts or services would cause the <br /> Debtors immediate and substantial economic harm and erode their valuable customer base. <br /> 61. Much of the mining equipment in use by the Debtors is highly customized and <br /> industry specific, and the available pool of experienced service providers are therefore limited. <br /> While the Debtors themselves employ on-site mechanics at many of their mines, no mining <br /> company can afford to employ sufficient mechanics to repair and maintain all the specialized <br /> equipment they operate in all possible locations at which service might be required. In many <br /> cases, the Debtors have service agreements (standard in the industry) with third-party <br /> maintenance Service Providers trained and licensed to provide maintenance services at the <br /> Debtors' mining complexes. <br /> 62. The Debtors believe that the Service Providers may be able to assert trade or <br /> mechanics' liens over the Debtors' leaseholds, as well as essential parts, machinery, and other <br /> equipment. In addition, pursuant to section 362(b)(3) of the Bankruptcy Code, the act of <br /> perfecting such liens, to the extent consistent with section 546(b) of the Bankruptcy Code, or to <br /> the extent the act is accomplished within the 30-day period set forth in section 547(e)(2)(A) of <br /> the Bankruptcy Code, is expressly excluded from the automatic stay. Absent payment of the <br /> outstanding pre-petition claims of the Service Providers, the Debtors believe that Service <br /> Providers may refuse or attempt to refuse to provide goods or service for or honor obligations <br /> 26 <br />
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