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Case 1 20-bk-12043 Doc 573 Filed 01/13/21 Entered 01/13/2111 03*53 Desc Main
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<br />IN THE UNITED STATES BANKRUPTCY COURT
<br />FOR THE SOUTHERN DISTRICT OF OHIO
<br />In re ) Chapter 11
<br />Hopedale Mining, LLC, et al,' ) Case No 1 20-bk-12043 (GRH)
<br />(Jointly Administered)
<br />Debtors
<br />Honorable Guy R Humphrey
<br />MEMORANDUM IN SUPPORT OF CONFIRMATION OF FIRST AMENDED JOINT
<br />PLAN OF ORDERLY LIQUIDATION OF HOPEDALE MINING, LLC AND ITS
<br />AFFILIATED DEBTORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE
<br />- The Debtors in these Chapter I I cases ere (with the lass tour digits of the. federal tax idoo fie.- numbers in
<br />parentheses) Rhmo GP LLC (8619), Rhmo Resource Pariners LP (7517), Rhino Energy LLC (6320), Rhino Tmekmg
<br />LLC (8773). Rhino Explomum LLC (8863), Triad Roof Suppon Systems LLC (1183), Sprm dale Land LLC (9816),
<br />McClure Canyon Muting LLC (3783), Rhino Nmthem Holdings LLC (1858), CAM -Ohio Real Estate LLC (1859),
<br />CAM -Colorado LLC (4269), Taylorville Mmmg LLC (5106), CAM Coal Trading LLC (4143), Casde Valley Mining
<br />LLC (9495), Jewell Valley Mining LLC (0270), Rhino Semces LLC (3356). Rhino Odfield Services LLC (8938),
<br />Rhino Technologies LLC (0994), CAM Mining LLC (2499), Rhino Coalfield Services LLC (3924), Hopedale Mmmg
<br />LLC (9060), CAM -Kentucky Real Estate LLC (9089), CAM -BB LLC (9097), Leesville Land LLC (7794), CAM
<br />AimmR LLC (5467). Pmnynle Eergy LLC (6095), Rhma Eastem LLC (1457), Rockhouse Land LLC (7702)
<br />Case 1 20-bk-12043 Doc 573 Filed 01/13/21 Entered 01/13/21 11 03 53 Desc Main
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<br />TABLE OF AUTHORITIES
<br />Page
<br />11 U S C §1125(a)(1)
<br />14
<br />Nestle Waters N Am Inc v Mountain Glacier LLC (In re Mountain Glacier LLC),
<br />877 F 3d 246, 248 (6th Cir 2017)
<br />14
<br />In re A C Will,-, Ca, 25 B R 173,176 (Bankr N D Ohio 1982)
<br />14
<br />H R Rep No 95-595, at 409 (1977) - ..
<br />14
<br />In re Mrehelson, 141 B R 715, 720, n 13 (Bankr E D Cal. 1992) -
<br />14
<br />In re Cajun Elee Power Coop, 150 F 3d 503, 518 (5th Ca 1998) -
<br />15
<br />11 U S C §1127(a) -
<br />16
<br />11 U.S C.§I 127(d) -
<br />16
<br />Fed R Bankr P 3019(a)
<br />16
<br />Teamsters Nat'l Freight Indus Negotiating Comm, v U S Truck Ca (In re U S Truck Co 1
<br />800 F 2d 581, 583 (6th Cir 1996)
<br />18
<br />In re Pomphco Highwov Dec, 468 B R 783, 789 (Bankr D-S C 2012)
<br />18
<br />In re Trenton Ridge Investors, LLC, 461 B R 440, 460 (Bankr S D Ohio 2011)
<br />18
<br />In re Trenton Ridge Investors, LLC, 461 B R 440, 463 (Banker- S D Ohio 2011)
<br />19
<br />11USC §1129(a)(1)
<br />19
<br />S Rep No 95-989, at 126 (1978), as reprinted in 1978 U S C C A N 5787, 5912
<br />19
<br />H R Rep No 95-595, at 412 (1977), as reprinted in 1978 U S C C A N 5963, 6368
<br />19
<br />In re S d W Enter , 37 B R 153,158 (Bankr N D I11 1984)
<br />19
<br />11USC §1122(a)
<br />19
<br />11 U S C § 1123(a)(2)-(7) -
<br />20-21
<br />l l U S C§ 1123(b)(1),(2)
<br />21
<br />11 U S C § 1123(b)(3)(A)-(B), 1123(b)(4) -
<br />22
<br />3
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<br />TABLE OF CONTENTS
<br />Page
<br />PRELIMINARY STATEMENT - 9
<br />BACKGROUND AND HIGHLIGHTS OF THE PLAN - 10
<br />A Background and Events Leading up to the Commencement of These Cases 10
<br />B Highlights of the Plan - ..to
<br />C The Solicitation Process . - 11
<br />THE DISCLOSURE STATEMENT AND SOLICITATION PROCEDURES SHOULD BE
<br />APPROVED UNDER SECTIONS 1125(B) AND 1125(A) OF THE BANKRUPTCY CODE 13
<br />MODIFICATIONS TO THE PLAN 16
<br />THE PLAN MEETS THE REQUIREMENTS FOR CONFIRMATION UNDER SECTION
<br />1129 OF THE BANKRUPTCY CODE - .. 18
<br />A The Plan Complies with the Applicable Provisions of Title 11 (Section 1129(a)(1)) .18
<br />B The Proponents of the Plan Comply with the Applicable Provisions of Title 11 (Section
<br />1129(a)(2)) 30
<br />C Good Faith (Section 1129(a)(3)) 31
<br />D Payments for Services and Expenses (Section 1129(a)(4)) 33
<br />E Identification of Directors, Officers and Insiders (Section 1129(a)(5)) 33
<br />F Rate Changes (Section 1129(a)(6)) 34
<br />G The "Best Interests" Test (Section 1129(a)(7)) - 34
<br />H Acceptance by Impaired Classes (Section 1129(a)(8)) ..... 36
<br />I. Treatment of Priority Claims (Section 1129(a)(9)) - 36
<br />1- Acceptance of At Least One Impaired Class (Section 1129(a)(10)) - - 37
<br />K Feasibility(Section 1129(a)(11)) 37
<br />L Payment of Certain Fees (Section 1129(a)(12)) . - 38
<br />M Continuation of Retiree Benefits(Section 1129(a)(13)) - 38
<br />N Sections 1129(a)(14)-(16) of the Bankruptcy Code are Inapplicable 38
<br />O The Plan Is Not an Attempt to Avoid Tax Obligations - 11 U S C 1129(d) 38
<br />THE PLAN SATISFIES THE "CRAMDOWN" REQUIREMENTS .. 39
<br />THE SUBSTANTIVE CONSOLIDATION ON WHICH THE PLAN IS BASED SHOULD BE
<br />GRANTED ... 40
<br />A Legal Standards for Substantive Consolidation - 40
<br />B Factual Basis for Substantive Consolidation of the Debtors' Estates .. 42
<br />CONCLUSION ... .... 43
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<br />11 US C § I 123(b)(5)-(6) .. - 22
<br />11 U S C § 1123(b)(6) .. 22
<br />In re Muriav Energv Holdings Ca, Case No 19-56885 (JEH) (Docket No 2135) 27
<br />In re Alpha Natural Res , Inc, 556 B R 249,260 (Bankr E D Va 2016) - 24
<br />In re Nat'l Heritage Found, Inc, 478 B R 216,234 (Bankr E D Va 2012) 24
<br />In re PWSHcldmg Corp, 228 F 3d 224, 245-47 (3d Cir 2000) .... 24
<br />Bluseth v Ctedit Suisse, 961 F 3d 1074 (9th Cir 2020) 24
<br />11 U-S C § 1125(e) 24
<br />In re Alpha Natural Res, Inc, 556 B R at 261 - - 25
<br />In re Ferstenergv Solutions Corp, No 18-50757 (AMK) (Bankr N D. Ohio Oct 16, 2019)
<br />(Docket No 3283) - 25
<br />In re Wornick Co, No 08-10654 (JVA) (Bankr S D Ohio June 27, 2008) (Docket No 262) 26
<br />In ie Alpha Natural Resources, Inc, 556 B R 249, 260 (Banks E D Va 2016) 26
<br />In re Ainadignt Communications, Inc. 519 F 3d 640, 655-57 (7'a Cir 2008) . . 26
<br />In re Mission Coal Company, LLC, No 18-04177 (Bankr N D Als Apr 15, 2019)
<br />(Docket No 1324) -. 26
<br />In to Westmoreland Coal Con panv, No 18-35672 (Bankr S D. Tea Mar 2, 2019)
<br />(Docket No 1561) .. ... 26
<br />In to Westinghouse Elee Co LLC, No 17-10751 (Bankr S D N Y Mar 28, 2018)
<br />(Docket No 2988) 26
<br />In re Caesars Entertainment Opeianng Co , No 15-01145 (Bankr NO III Jan 17, 2017)
<br />(Docket No. 6334) 26
<br />In re Fihei Mark, Inc, Case No 04-10463 (Bankr D Vt Dec 5, 2005) - 26
<br />In re RCN Cmp, Case No 04-13638 (RDD) (Bankr S D N Y Dec 8, 2004) 26
<br />In re Kmart Corp, Case No 02-02474 (Bankr N D III Apr 23, 2003) 26
<br />In re Sterling Chem Holdings, Inc, Case No 01-37805-1-14-11
<br />(Bankr S D. Tex Nov 20. 2002) 26
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