2021-01-14_GENERAL DOCUMENTS - C1980004

• Permit No: C1980004
• IBM Index Class Name: General Documents
• Doc Date: 1/14/2021
• Doc Name Note: Case No. 20-12043 ‎(GRH)‎ Hopedale Mining LLC
• Doc Name: Bankruptcy Notice
• From: DRMS Website
• To: DRMS
• Permit Index Doc Type: General Correspondence
• Email Name: JDM
• Email Name: JRS
• Email Name: GRM
• Email Name: CMM
• Email Name: CAB
• Media Type: D
• Archive: No

Case 120-bk-12043 Doc 573 Filed 01/13/21 Entered 01/13/21 110353 Desc Main
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Case 1:20-bk-12043 Doc 573 Filed 01/13/21 Entered 01/13/21 1103:53 Desc Main
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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF OHIO
In re: ) Chapter 11
Hopedale Mining, LLC, et al.,' ) Case No. 120-bk-12043 (GRH)
(Jointly Administered)
Debtors.
Honorable Guy R. Humphrey
MEMORANDUM IN SUPPORT OF CONFIRMATION OF FIRST AMENDED JOINT
PLAN OF ORDERLY LIQUIDATION OF HOPEDALE MINING, LLC AND ITS
AFFILIATED DEBTORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE
' The Debtors in these Chapter 11 cases are (with the last four digits of then federal tax identification numbers in
pareatheses): Rhino GP LLC (8619), Rhino Resource Partners LP (7517), Rhino Energy LLC (6320), Rhino Tacking
LLC (8773), Rhm. Expl-tion LLC (8863), Triad Roof Support Systems LLC (1183), Springdale Land LLC (9816),
McClave Canyon Mining LLC (3783), Rhino Norhea Holdings LLC (1858), CAM -Ohio Real Estate LLC (1859),
CAMLolorndo LLC (4269), Taylorville Mining LLC (5106), CAM Coal Trading LLC (4143), Castle Valley Mining
LLC (9495), Jewell Valley Mining LLC (0270), Rhino Services LLC (3356), Rhino Oilfield Services LLC (8938),
Rhino Technologies LLC (0994), CAM Mining LLC (2498), Rhino Coalfield Services LLC (3924), Hopedale Mining
LLC (9060), CAM -Kentucky Real Estate LLC (9089), CAM -BB LLC (9097), Leesville Land LLC (7794), CAM
Aircraft LLC (5467), Pevvyxile Energy LLC (6095), Rhino Eastern LLC (1457), Rockhouse Land LLC (7702),
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TABLE OF AUTHORITIES
Pale
11 U.S.C. § 1125(a)(1).................................................................................................................
14
Nestle WatersN. Am. Inc. v. Mountain GlacierLLC (In re Mountain Glacier LLC),
877 E3d 246,248 (6th Cu. 2017)...................................................................................
14
In re A. C. Williams Co., 25 B.R. 173,176 (Banta. N.D. Ohio 1982)..........................................
14
H.R. Rep. No. 95-595, at 409 (1977)............................................................................................
14
In re Michelson, 141 B.R. 715, 720, n.13 (Banta. E.D. Cal. 1992)............................................
14
In re Cajun Elec. Power Coop., 150 E3d 503, 518 (5th Cir. 1998)............................................
15
11 U.S.C. §1127(a)......................................................................................................................
16
11 U.S.C. §1127(d)......................................................................................................................
16
Fed. R. Bankr. P. 3019(a)............................................................................................................16
Teamsters Nat'lFreight Indus. Negotiating Comm. v. U.S. Track Co. (I re U.S. TrackCo)
800 F.2d 581, 583 (6th Cir. 1986)...................................................................................
18
In re Parnplico Highway Der., 468 B.R. 783, 789 (Bankr. D.S.C. 2012)...................................
18
In re Trenton Ridge Investors, LLC, 461 B.R. 440,460 (Banta. S.D. Ohio 2011) .....................
18
In re Trenton Ridge Investors, LLC, 461 B.R. 440,463 (Banta. S.D. Ohio 2011) .....................
19
11 U.S.C. § 1129(a)(1).................................................................................................................
19
S. Rep. No. 95-989, at 126 (1978), as reprinted in 1978 U.S.C.C.A.N. 5787, 5912 ...................
19
H.R. Rep. No. 95-595, at 412 (1977), as reprinted in 1978 U.S.C.C.A.N. 5963, 6368 ...............
19
In re S & WEnter., 37 B.R. 153,158 (Banta. N.D. Ill. 1984)....................................................
19
11 U.S.C. § 1122(a).....................................................................................................................19
11 U.S.C. § 1123(a)(2)-(7).....................................................................................................20-21
11 U.S.C. § 1123(b)(1),(2)...........................................................................................................21
11 U.S.C. § 1123(b)(3)(A)-(B), 1123(b)(4).................................................................................22
TABLE OF CONTENTS
Pale
PRELIMINARY STATEMENT...........................................................................9
BACKGROUND AND HIGHLIGHTS OF THE PLAN ............................................. 10
A. Background and Events Leading up to the Commencement of These Cases ............... 10
B. Highlights of the Plan............................................................................... 10
C. The Solicitation Process........................................................................... 11
THE DISCLOSURE STATEMENT AND SOLICITATION PROCEDURES SHOULD BE
APPROVED UNDER SECTIONS 1125(B) AND 1125(A) OF THE BANKRUPTCY CODE .13
MODIFICATIONS TO THE PLAN.......................................................................................... 16
THE PLAN MEETS THE REQUIREMENTS FOR CONFIRMATION UNDER SECTION
1129 OF THE BANKRUPTCY CODE.................................................................................... 18
A. The Plan Complies with the Applicable Provisions of Title 11 (Section 1129(a)(1)) ......IS
B. The Proponents ofthe Plan Comply with the Applicable Provisions of Title 11 (Section
1129(a)(2)).......................................................................................................................30
C. Good Faith (Section I129(a)(3))......................................................................................31
D. Payments for Services and Expenses (Section 1129(a)(4))............................................33
E. Identification of Directors, Officers and Insiders (Section 1129(a)(5)) ..........................33
F. Rate Changes (Section 1129(a)(6))..................................................................................34
G. The "Best Interests" Test (Section 1129(a)(7))................................................................34
H. Acceptance by Impaired Classes (Section 1129(a)(8))....................................................36
I. Treatment of Priority Claims (Section 1129(a)(9)).........................................................36
J. Acceptance ofAt Least One Impaired Class (Section 1129(a)(10))...............................37
K. Feasibility (Section 1129(a)(11)).....................................................................................37
L. Payment of Certain Fees (Section 1129(a)(12))..............................................................38
M. Continuation of Retiree Benefits (Section 1129(a)(13))..................................................38
N. Sections 1129(a)(14)-(16) ofthe Bankruptcy Code are Inapplicable..............................38
O. The Plan Is Not an Attempt to Avoid Tax Obligations 11 U.S.C. 1129(d) ................38
THE PLAN SATISFIES THE "CRAMDOWN" REQUIREMENTS.........................................39
THE SUBSTANTIVE CONSOLIDATION ON WHICH THE PLAN IS BASED SHOULD BE
GRANTED..................................................................................................................................40
A. Legal Standards for Substantive Consolidation...............................................................40
B. Factual Basis for Substantive Consolidation ofthe Debtors' Estates..............................42
CONCLUSION.............................................................................................................................43
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11 U.S.C. §1123(b)(5)-(6)...........................................................................................................22
11 U.S.C. § 1123(b)(6)................................................................................................................22
In re Murray Energy Holdings Co., Case No. 19-56885 (JEH) (Docket No. 2135) ...................27
In re Alpha Natural Res., Inc., 556 B.R. 249,260 (Bankr. E.D. Va. 2016)................................24
In re Nat'l Heritage Found, Inc., 478 B.R. 216,234 (Bankr. E.D. Va.2012) ...........................24
In re PWSHolding Corp., 228 E3d 224, 245-47 (3d Cu. 2000)................................................24
Blixseth v. Credit Suisse, 961 E3d 1074 (9th Cu. 2020)......................................................... .... 24
11 U.S.C. § 1125(e).....................................................................................................................24
In re Alpha Natural Res., Inc., 556 B.R. at 261...........................................................................25
In re Firstenergy Solutions Corp., No. 18-50757 (AMK) (Banta. N.D. Ohio Oct 16, 2019)
(Docket No. 3283).......................................................................................................................25
In re Wornick Co., No. 08-10654 (JVA) (Banta. S.D. Ohio June 27, 2008) (Docket No. 262) ...26
In re Alpha Natural Resources, Inc., 556 B.R. 249,260 (Bankr. E.D. Va. 2016) .......................26
In re Airadigm Communications, Inc., 519 E3d 640, 655-57 (71" Cir. 2008) .............................26
In re Mission Coal Company, LLC, No. 18-04177 (Banta. N.D. Ala. Apr. 15, 2019)
(Docket No. 1324)...........................................................................................................26
In re Westmoreland Coal Company, No. 18-35672 (Banta. S.D. Tex. Mar. 2, 2019)
(Docket No. 1561)...........................................................................................................26
In re Westinghouse Elec. Co. LLC, No. 17-10751 (Banta. S.D.N.Y. Mar. 28, 2018)
(Docket No. 2988)...........................................................................................................26
In re Caesars Entertainment Operating Co., No. 15-01145 (Banta. N.D. I11. Jan. 17, 2017)
(Docket No. 6334)...........................................................................................................26
In re FiberMark, Inc., Case No. 04-10463 (Banta. D. Vt. Dec. 5, 2005)...................................26
In re RCN Corp., Case No. 04-13638 (RDD) (Banta. S.D.N.Y. Dec 8., 2004) ..........................26
In re Kmart Corp., Case No. 02-02474 (Banta. N.D. IEI. Apr. 23, 2003)....................................26
In re Sterling Chem. Holdings, Inc., Case No. 01-37805-114-11
(Bankr. S.D. Tex. Nov. 20, 2002).................................................................................... 26
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