Horizon Natural Resources

Client

From the Horizon Natural Resources Bankruptcy, Lexington Coal Company was established to settle reclamation claims of certain coal mines not purchased from the Horizon bankruptcy and other liabilities.

Challenge

The Company had filed claims totaling approximately 2,300 with a value of approximately $5 billion. The Company also needed assistance in managing other Wind Down activities including managing escrow accounts, accounting and IT matters.

Solution

Bridge provided a Wind Down Team of professionals experienced at resolving, reconciling and supporting litigation in a bankruptcy. The team prioritized the claims and grouped the claims according to category, compared them to the plan of reorganization and settled according to the plan. The team also determined the accuracy of filed claims by comparing to the Company's books and records. The team negotiated with claimants to enable further reductions in filed claims.

Results

The team was successful at reducing filed claims from 2,300 totaling $5 billion to approximately 600 claims totaling $25 million.