Coal Operator Cambrian Holding’s Trustee Seeks to Clawback $7.7M from Several Defendants
June 11, 2021, Eastern District of Kentucky – Trustee Ellen Arvin Kennedy as a Liquidating Trustee of the Cambrian Liquidating Trust for the bankruptcy estate of Cambrian Holding Company, et al (“ Debtors”) brings clawback actions against thirteen defendants to avoid and recover alleged “preference and fraudulent transfers” under 11 U.S.C. §§ 547, 548 and 550 of the Bankruptcy Code. The Trustee alleges that the Debtors allegedly made transfers worth $7.7M to and for the benefit of several defendants, which must be avoided and recovered for the benefit of the bankruptcy estate.
By way of background, the Debtors comprise a group of nineteen (19) privately held companies. Cambrian Holding Company, Inc. is the ultimate parent of all the Debtors, except one. The Debtors operate several mine sites in Pike County, Kentucky. The Debtors’ core business was producing and processing metallurgical coal and thermal coal for use by utility providers and industrial companies located primarily in the eastern United States and Canada. The largest case in the group is filed against Kentucky Power Company for a return of $2,227,408.29. Some of the other creditors include; Paragon Asset Recovery Services, Inc., Ronnie Long Trucking, Inc., Tater Trucking, LLC, et al.
Two years ago, on June 16, 2019, Cambrian Holding Company, Inc. and eighteen of its affiliates each filed a petition in the United States Bankruptcy Court for the Eastern District of Kentucky seeking relief under Chapter 11 of the United States Bankruptcy Code. The Debtors’ cases have been assigned to the Honorable Judge Gregory R. Schaaf. The adversary proceeding is styled as In re Cambrian Holding Company, et al, Case Number – 19-51200