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Home New Cases Fifty-Nine Defendants Face Preference Clawback in Hopedale Mining Bankruptcy

Fifty-Nine Defendants Face Preference Clawback in Hopedale Mining Bankruptcy

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July 18, 2022, US Bankruptcy Court for the Southern District of Ohio – GlassRatner Advisory & Capital Group, LLC d/b/a B. Riley Advisory Services (the “Trustee” or the “Plaintiff”) solely in its capacity as Liquidating Trustee of the Hopedale Mining, LLC et al. (the “Debtors”), brings adversary proceedings against fifty-nine (59) Defendants to avoid and recover alleged preferential and fraudulent transfers. 

Prior to the petition date, the Debtors were diversified coal producers focused on coal and energy related assets and activities. The Debtors, as coal mining operators, maintained business relationships with various business entities, through which the Debtors regularly purchased goods and services. However, the Debtors started experiencing declines in coal production, coal sales, and coal revenues of the three years preceding the petition date. The Trustee claims that the value of the Debtors’ assets diminished and the amount of the Debtors’ liabilities substantially exceeded the value of their assets, both collectively and on a Debtor-by-Debtor basis. 

Rhino Energy LLC, one of the Debtors, handled the general administrative functions for all Debtors. The Trustee alleges that Rhino Energy, LLC, on behalf of the other Debtors, made transfers of interest in Debtor’s property to or for the benefit of Defendants during the preference period. 

The Trustee seeks to clawback these transfers as alleged “preference”, claiming that they were made when the Debtors were insolvent; and in satisfaction of an antecedent debt or debts owed by the Debtors to Defendant. 

In alternative, the Debtor alleges that these transfers were “potentially fraudulent”, claiming that the Debtors did not receive reasonably equivalent value in exchange for such transfers.   

The Defendants include the McKeen Group; Lyden Oil Company; E & E Construction, Inc; Epiroc USA LLC; among others. 

In re Hopedale Mining, LLC et al., AP No. 20-12043, US Bankruptcy Court for Southern Ohio. 

The post Fifty-Nine Defendants Face Preference Clawback in Hopedale Mining Bankruptcy first appeared on onebowlinggreen.com.

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