Document Page 1 of 24 JONES DAY North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone: (216) 586-3939 Facsimile: (216) 579-0212 David G. Heiman (pro hac vice pending) Carl E. Black (pro hac vice pending) Thomas A. Wilson (pro hac vice pending) Proposed Attorneys for Debtors and Debtors in Possession HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 Tyler P. Brown (VSB No. 28072) J.R. Smith (VSB No. 41913) Henry P. (Toby) Long, III (VSB No. 75134) Justin F. Paget (VSB No. 77949) IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA RICHMOND DIVISION In re: Alpha Natural Resources, Inc., et al., Debtors. Chapter 11 Case No. 15- ( ) (Joint Administration Requested) MOTION OF DEBTORS AND DEBTORS IN POSSESSION, PURSUANT TO SECTION 105 OF THE BANKRUPTCY CODE, FOR AN ORDER (A) CONFIRMING THE PROTECTIONS OF SECTIONS 362, 365 AND 525 OF THE BANKRUPTCY CODE AND (B) GRANTING CERTAIN RELATED RELIEF Alpha Natural Resources, Inc. ("ANR") and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the "Debtors"), respectfully represent as follows: Background 1. On the date hereof (the "Petition Date"), the Debtors commenced their reorganization cases by filing voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code"). By a motion filed on the Petition Date, the Debtors have requested that their chapter 11 cases be consolidated for procedural purposes only
Document Page 2 of 24 and administered jointly. The Debtors are authorized to continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. 2. A comprehensive description of the Debtors' businesses and operations, capital structure and the events leading to the commencement of these chapter 11 cases, can be found in the declarations of (a) Kevin S. Crutchfield, Chief Executive Officer and Chairman of the Board of Directors of ANR, and (b) Philip J. Cavatoni, Executive Vice President and Chief Financial and Strategy Officer of ANR in support of the Debtors' "first day" pleadings (together, the "First Day Declarations"), which were filed contemporaneously herewith and which are incorporated by reference. Jurisdiction 3. This Court has subject matter jurisdiction to consider this matter pursuant to 28 U.S.C. 1334. This is a core proceeding pursuant to 28 U.S.C. 157(b). Venue is proper before this Court pursuant to 28 U.S.C. 1408 and 1409. Relief Requested 4. To aid in the administration of the Debtors' bankruptcy cases and to avoid disruptions to the Debtors' businesses, the Debtors hereby seek an order, pursuant to section 105(a) of the Bankruptcy Code, that: (a) confirms the application of three key protections afforded to the Debtors under the Bankruptcy Code: (i) the automatic stay provisions of section 362 of the Bankruptcy Code; (ii) the anti-termination and anti-modification provisions of section 365 of the Bankruptcy Code; and (ii) the anti-discrimination provisions of section 525 of the Bankruptcy Code (collectively, the "Code Protections"); and (b) approves a procedure to expeditiously address violations of the Code Protections. The extensive and highly regulated nature of the Debtors' businesses, the Debtors' need for, and reliance upon, among other things, -2-
Document Page 3 of 24 contract parties continuing to perform their obligations and the Debtors' interactions with parties who may be unfamiliar with, are mistaken regarding, or who simply ignore the Code Protections require that an order confirming these protections be entered by this Court to maximize value for stakeholders. Furthermore, to ensure that any violations of the Code Protections do not disrupt the Debtors' businesses, the Debtors are seeking approval of a process to promptly adjudicate any such violations, to the extent not otherwise resolved. Basis for Relief Confirming the Protections of Sections 362, 365 and 525 of the Bankruptcy Code 5. As a result of the commencement of the Debtors' chapter 11 cases, the automatic stay imposed pursuant to section 362 of the Bankruptcy Code enjoins (subject to certain exceptions) all persons and all governmental units from, among other things: (a) commencing or continuing any judicial, administrative or other proceeding against the Debtors that was or could have been commenced before the Debtors' chapter 11 cases were commenced; (b) recovering upon a claim against any of the Debtors that arose prior to the commencement of the Debtors' chapter 11 cases; (c) taking any action to collect, assess or recover a claim against any of the Debtors that arose before the commencement of these chapter 11 cases; and (d) acting to obtain possession of, or exercise control over, property of the Debtors' estates. See 11 U.S.C. 362(a)(1), (3), (6). 6. Section 365 of the Bankruptcy Code prohibits all parties to executory contracts or unexpired leases with any Debtors from, among other things, modifying or terminating such contracts or leases, or any right or obligation under such contracts or leases, at any time after the commencement of these cases solely because of a provision in any such contract or lease that is conditioned on, among other things: (a) the insolvency or financial -3-
Document Page 4 of 24 condition of a Debtor at any time before the closing of the Debtors' chapter 11 cases; or (b) the commencement of the Debtors' chapter 11 cases. See 11 U.S.C. 365(e)(1). 7. In addition, section 525 of the Bankruptcy Code prohibits and enjoins any and all governmental units from, among other things: (a) denying, revoking, suspending or refusing to renew any permit, license, charter, franchise or other similar grant to the Debtors; (b) placing conditions upon such a grant to the Debtors; or (c) discriminating against the Debtors with respect to such a grant, solely because the Debtors are debtors under the Bankruptcy Code, may have been insolvent before the commencement of these chapter 11 cases or are insolvent during the pendency of these chapter 11 cases or have not paid a dischargeable debt. See 11 U.S.C. 525. 8. Each of the Code Protections is self-executing and, collectively, they constitute fundamental debtor protections that, in combination with other provisions of the Bankruptcy Code, provide the Debtors with the "breathing spell" that is essential to the Debtors' ability to position themselves to maximize value to stakeholders. See, e.g., Houck v. Substitute Trustee Servs., 2015 U.S. App. LEXIS 11318, at *14 (4th Cir. July 1, 2015) ("th[e] automatic stay is one of the fundamental debtor protections provided by the bankruptcy laws [i]t gives the debtor a breathing spell from his creditors and stops all collection efforts, all harassment, and all foreclosure actions") (internal quotations and citations omitted); In re Andrews, 2015 Bankr. LEXIS 2392, at *16 (Bankr. E.D. Va. July 21, 2015) ("The automatic stay under 11 U.S.C. 362 is designed to give the debtor an immediate breathing spell, protecting the debtor from all collection efforts, harassment, and foreclosure actions"); FCC v. NextWave Pers. Commc'ns Inc., 537 U.S. 293, 307 (2003) ("The government is not to revoke a bankruptcy debtor's license [under section 525(a) of the Bankruptcy Code] solely because of a failure to pay his debts."). -4-
Document Page 5 of 24 9. The protections in these provisions extend to protect a debtor's property, contracts and regulatory rights and privileges wherever they are located and by whomever held. See, e.g., Sec. Investor Prot. Corp. v. Bernard L. Madoff Inv. Sec., LLC, 474 B.R. 76, 82 (S.D.N.Y. 2012) ("as numerous judicial opinions explain, 'the automatic stay applies extraterritorially'") (citing In re McLean Indus., Inc., 74 B.R. 589, 601 (Bankr. S.D.N.Y. 1987)); Underwood v. Hilliard (In re Rimsat, Ltd.), 98 F.3d 956, 961 (7th Cir. 1996) (bankruptcy court's in rem jurisdiction over property of the estate permits injunctions against foreign proceedings pursuant to the automatic stay); NextWave Pers. Commc'ns, 537 U.S. at 308 (pursuant to section 525(a) of the Bankruptcy Code, the Federal Communications Commission could not cancel a debtor's broadcasting license due to non-payment of licensing fees during the bankruptcy process); cf. French v. Liebmann (In re French), 320 B.R. 78, 82 83 (D. Md. 2004) (citing, with approval, precedent that section 362 of the Code should be given extraterritorial application, and finding that "the efficacy of the bankruptcy proceeding depends on the [bankruptcy] court's ability to control and marshal the assets of the debtor wherever located") (alternation in original), aff d, 440 F.3d 145, 151 (4th Cir. 2006) (holding that the bankruptcy estate includes both domestic and foreign property); see also 11 U.S.C. 541(a) ("The commencement of a case under section 301 of this title creates an estate. Such estate is comprised of all the following property, wherever located and by whomever held.") (emphasis added). 10. Moreover, "[c]ourts have consistently held that contract rights are property of the estate." In re Enron Corp., 300 B.R. 201, 212 (Bankr. S.D.N.Y. 2003) (quoting Elder- Beerman Stores Corp. v. Thomasville Furniture Indus., Inc. (In re Elder-Beerman Stores Corp.), 195 B.R. 1019, 1023 (Bankr. S.D. Ohio 1996)); EBC I, Inc. v. Am. Online, Inc. (In re EBC I, Inc.), 356 B.R. 631, 639 (Bankr. D. Del. 2006) (same); see also Fed. Realty Inv. Trust v. Park (In -5-
Document Page 6 of 24 re Park), 275 B.R. 253, 255 (Bankr. E.D. Va. 2002) ("When a debtor files for bankruptcy, an 'estate' is created that includes all property interests of the debtor, legal or equitable. This includes the debtor's contract rights.") (internal citation omitted); U.S. Bank Trust Nat'l Ass'n v. AMR Corp. (In re AMR Corp.), 730 F.3d 88, 102 03 (2d Cir. 2013) (court acknowledging that contract rights are property of the estate). 11. Accordingly, any actions by third parties to modify or terminate contracts are prohibited absent court approval or express statutory exceptions. See NLRB v. Bildisco & Bildisco, 465 U.S. 513, 531 (1984) (holding that while the debtor may enforce the terms of the contract against the creditor, the creditor is "precluded from enforcing the contract terms" of an executory contract prior to assumption by the debtor); see also In re Tidewater Memorial Hospital, Inc., 106 B.R. 876, 883-84 (Bankr. E.D. Va. 1989) (quoting Bildisco); United States Postal Serv. v. Dewey Freight Sys., Inc., 31 F.3d 620, 624-25 (8th Cir. 1994) ("After a debtor commences a Chapter 11 proceeding, but before executory contracts are assumed or rejected under 365(a), those contracts remain in existence, enforceable by the debtor but not against the debtor.") (emphasis in original); Newman Grill Sys., LLC v. Ducane Gas Grills, Inc. (In re Ducane Gas Grills, Inc.), 320 B.R. 341, 353 (Bankr. D.S.C. 2004) (citing United States Postal Serv.). 12. Notwithstanding the self-executing and global nature of the Code Protections, not all parties affected or potentially affected by the commencement of a chapter 11 case are aware of, comprehensively understand or will abide by these provisions. Experience has shown that it is often necessary to advise third parties of the existence, scope and effect of sections 362, 365 and 525 of the Bankruptcy Code through a separate order. For these reasons, it is both appropriate and common for a bankruptcy court to issue an order confirming the Code Protections. -6-
Document Page 7 of 24 13. Such an order is appropriate in the Debtors' chapter 11 cases because the Debtors' mining operations are particularly dependent upon, among other things, (a) the permits and other regulatory rights protected by Section 525 of the Bankruptcy Code and (b) the uninterrupted performance by counterparties to contracts with the Debtors (including contractual relationships with foreign entities operating in foreign jurisdictions). The Debtors believe that many of the entities subject to the Code Protections may be unaware of or misapprehend the scope of the protection these sections provide to the Debtors. Accordingly, the Debtors respectfully request that this Court issue an order that confirms the applicability of the Code Protections. The Debtors believe that the existence of such an order, which the Debtors will be able to transmit to affected parties, will maximize the protections afforded by sections 362, 365 and 525 of the Bankruptcy Code. Applicable Authority 14. The Court's general equitable powers are codified in section 105(a) of the Bankruptcy Code. Section 105(a) of the Bankruptcy Code empowers the court to "issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title." 11 U.S.C. 105(a). Granting the relief requested herein is fully consistent with the terms of the relevant Bankruptcy Code provisions and will facilitate a smooth and orderly transition into chapter 11. The Debtors, therefore, request that this Court grant the requested relief. 15. Similar relief has been granted by courts in other districts in large chapter 11 cases. See, e.g., In re Cal Dive Int'l, Inc., No. 15-10458 (CSS) (Bankr. D. Del. Mar. 6, 2015); In re NII Holdings, Inc., No. 14-12611 (SCC) (Bankr. S.D.N.Y. Sept. 16, 2014); In re Arcapita Bank B.S.C.(c), No. 12-11076 (SHL) (Bankr. S.D.N.Y. May 22, 2012); In re Almatis B.V., No. 10-12308 (MG) (Bankr. S.D.N.Y. May 17, 2010); In re Oldco M Corporation (f/k/a Metaldyne Corp.), No. 09-13412 (MG) (Bankr. S.D.N.Y. May 29, 2009); -7-
Document Page 8 of 24 In re Mark IV Indus., Inc., No. 09-12795 (SMB) (Bankr. S.D.N.Y. May 4, 2009); In re Chrysler LLC, No. 09-50002 (AJG) (Bankr. S.D.N.Y. May 4, 2009). Request for Approval of Code Protections Procedures 16. Given the vulnerability of the Debtors' business and operations to immediate disruption if parties violate the Code Protections, the Debtors seek authority to implement a process to formally and expeditiously address violations of the Code Protections and propose that the following procedures (the "Code Protections Procedures") be implemented. If, in the Debtors' reasonable judgment, a party (and such party, a "Non-Compliant Party") has violated the Code Protections in any manner, the Debtors may: (a) file a notice (a "Notice of Non-Compliance"), substantially in the form attached hereto as Exhibit A, setting forth (i) the identity of the Non-Compliant Party, (ii) the Debtors' belief that the Non-Compliant Party has violated the Code Protections and (iii) the nature of such violation; and (b) seek the entry of an order (an "Order to Show Cause"), substantially in the form attached hereto as Exhibit B, requiring the Non-Compliant Party to appear before the Court and show cause why it should not be found to have violated the Code Protections. 17. Similar procedures ensuring interested parties' compliance with certain of the Code Protections are commonly approved by bankruptcy courts in this jurisdiction and others. See, e.g., In re Patriot Coal Corp., No. 15-32450 (Bankr. E.D. Va. May 13, 2015 and June 4, 2015) (entering interim and final orders authorizing similar "repudiating vendor procedures" with respect to contract counterparties that demand payment of prepetition debt in violation of certain of the Code Protections); In re James River Coal Co., No. 14-31848 (Bankr. E.D. Va. Apr. 10, 2014 and May 9, 2014) (same); In re Patriot Coal Corp., No. 12-12900 (Bankr. S.D.N.Y. July 16, 2012 and Aug. 2, 2012) (same); In re OTC Holdings Corp., No. 10-12636 -8-
Document Page 9 of 24 (BLS) (Bankr. D. Del. Aug. 27, 2010 and Sept. 17, 2010) (same); In re Chrysler LLC, No. 09-50002 (Bankr. S.D.N.Y. May 6, 2009 and May 20, 2009) (same) Waiver of Separate Memorandum of Points and Authorities 18. The Debtors respectfully request that the Court regard any argument and citations set forth herein as a written memorandum of facts, reasons and authorities that has been combined with the relief requested herein, as permitted by Local Bankruptcy Rule 9013-1(G)(1). Alternatively, the Debtors respectfully request that the Court waive any requirement set forth in Local Bankruptcy Rule 9013-1(G)(1) that this Motion be accompanied by such a written memorandum. Notice 19. Notice of this Motion has been given to: (a) the Office of the United States Trustee for the Eastern District of Virginia; (b) Davis Polk & Wardwell LLP and McGuireWoods LLP, as co-counsel to Citibank, N.A., as administrative and collateral agent under the Debtors' proposed postpetition secured credit facility, and Citicorp North America, Inc., as administrative and collateral agent under the Debtors' prepetition secured credit facility; (c) Kirkland & Ellis LLP, as counsel to the Second Lien Noteholder Group; (d) the indenture trustees for the Debtors' secured and unsecured notes (and counsel, where known); (e) counsel to General Electric Credit Corporation, as administrative agent under the Debtors' prepetition secured accounts receivable facility; (f) the creditors holding the 50 largest unsecured claims against the Debtors' estates on a consolidated basis; (g) the United Mine Workers of America; and (h) any party that has requested notice pursuant to Bankruptcy Rule 2002 as of the time of service. In light of the nature of the relief requested, the Debtors submit that no further notice is necessary. -9-
Document Page 10 of 24 No Prior Request 20. No prior request for the relief sought in this Motion has been made to this or any other Court in connection with these chapter 11 cases. WHEREFORE, the Debtors respectfully request that the Court (i) enter an order substantially in the form attached hereto as Exhibit C, granting the relief requested herein; and (ii) grant such other and further relief to the Debtors as the Court may deem proper. Dated: August 3, 2015 Richmond, Virginia Respectfully submitted, /s/ Henry P. (Toby) Long, III Tyler P. Brown (VSB No. 28072) J.R. Smith (VSB No. 41913) Henry P. (Toby) Long, III (VSB No. 75134) Justin F. Paget (VSB No. 77949) HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 David G. Heiman (pro hac vice pending) Carl E. Black (pro hac vice pending) Thomas A. Wilson (pro hac vice pending) JONES DAY North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone: (216) 586-3939 Facsimile: (216) 579-0212 PROPOSED ATTORNEYS FOR DEBTORS AND DEBTORS IN POSSESSION -10-
Document Page 11 of 24 Exhibit A Notice of Non-Compliance
Document Page 12 of 24 JONES DAY North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone: (216) 586-3939 Facsimile: (216) 579-0212 David G. Heiman (pro hac vice pending) Carl E. Black (pro hac vice pending) Thomas A. Wilson (pro hac vice pending) Proposed Attorneys for Debtors and Debtors in Possession HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 Tyler P. Brown (VSB No. 28072) J.R. Smith (VSB No. 41913) Henry P. (Toby) Long, III (VSB No. 75134) Justin F. Paget (VSB No. 77949) IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA RICHMOND DIVISION In re: Alpha Natural Resources, Inc., et al., Debtors. Chapter 11 Case No. 15- ( ) (Joint Administration Requested) NOTICE OF NON-COMPLIANCE PLEASE TAKE NOTICE OF THE FOLLOWING: 1. On [August 3], 2015, the above-captioned debtors (collectively, the "Debtors") filed their Motion of Debtors and Debtors in Possession, Pursuant to Section 105 of the Bankruptcy Code, for an Order (A) Confirming the Protections of Sections 362, 365 and 525 of the Bankruptcy Code and (B) Granting Certain Related Relief (the "Motion"). On, 2015, the United States Bankruptcy Court for the Eastern District of Virginia (the "Bankruptcy Court") entered an order granting the relief requested in the Motion (D.I. ) (the "Order"). 2. Pursuant to paragraph of the Order, the Debtors have identified as a "Non-Compliant Party" (as such term is defined in the Motion) due to
Document Page 13 of 24 the Non-Compliant Party's violation of one or more of sections 362, 365 or 525 of the Bankruptcy Code (the "Code Protections"). Specifically, the Debtors believe that the Non-Compliant Party has [ ]. 3. Contemporaneously herewith, the Debtors are filing a proposed Order to Show Cause requesting that the Bankruptcy Court order the Non-Compliant Party to appear before the Bankruptcy Court at a hearing to be held at.m., Eastern Time, on, 201_, before the Honorable, United States Bankruptcy Judge, in the Bankruptcy Court, Courtroom, 701 East Broad Street, Richmond, Virginia 23219, and demonstrate why the Non-Compliant Party should not be held in violation of the Code Protections. -2-
Document Page 14 of 24 Dated:, 2015 Richmond, Virginia Respectfully submitted, /s/ Tyler P. Brown (VSB No. 28072) J.R. Smith (VSB No. 41913) Henry P. (Toby) Long, III (VSB No. 75134) Justin F. Paget (VSB No. 77949) HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 David G. Heiman (pro hac vice pending) Carl E. Black (pro hac vice pending) Thomas A. Wilson (pro hac vice pending) JONES DAY North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone: (216) 586-3939 Facsimile: (216) 579-0212 PROPOSED ATTORNEYS FOR DEBTORS AND DEBTORS IN POSSESSION -3-
Document Page 15 of 24 Exhibit B Order to Show Cause
Document Page 16 of 24 JONES DAY North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone: (216) 586-3939 Facsimile: (216) 579-0212 David G. Heiman (pro hac vice pending) Carl E. Black (pro hac vice pending) Thomas A. Wilson (pro hac vice pending) Proposed Attorneys for Debtors and Debtors in Possession HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 Tyler P. Brown (VSB No. 28072) J.R. Smith (VSB No. 41913) Henry P. (Toby) Long, III (VSB No. 75134) Justin F. Paget (VSB No. 77949) IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA RICHMOND DIVISION In re: Alpha Natural Resources, Inc., et al., Debtors. Chapter 11 Case No. 15- ( ) (Joint Administration Requested) ORDER TO SHOW CAUSE This matter coming before the Court on the Notice of Non-Compliance dated, 20 (D.I. ) (the "Notice") filed by the debtors and debtors in possession in the above-captioned cases (collectively, the "Debtors"); the Court having reviewed the Notice and the Order, Pursuant to Section 105 of the Bankruptcy Code, (A) Confirming the Protections of Sections 362, 365 and 525 of the Bankruptcy Code and (B) Granting Certain Related Relief (the "Order") pursuant to which the Notice was filed; and the Court having found that (i) the Court has jurisdiction over this matter pursuant to 28 U.S.C. 157 and 1334, (ii) this is a core proceeding pursuant to 28 U.S.C. 157(b), (iii) the Notice provided for herein is sufficient under the circumstances and (iv) the Debtors have complied with the terms and conditions set forth in the Order;
Document Page 17 of 24 IT IS HEREBY ORDERED THAT: 1., who is identified by the Debtors as a "Non-Compliant Party" in the Notice, is hereby ordered, at a hearing to be conducted before this Court at.m., Eastern Time on, 201_, before the Honorable, United States Bankruptcy Judge, in the Bankruptcy Court, Courtroom, 701 East Broad Street, Richmond, Virginia 23219 (the "Hearing"), to show cause why the Vendor should not be held to have violated sections 362, 365 and/or 525 of the Bankruptcy Code, as identified in the Notice. 2. Service of this Order to Show Cause is to be made by the Debtors upon (a) the Non-Compliant Party, (b) the Office of the United States Trustee and (c) counsel for any official committee of unsecured creditors appointed in these cases pursuant to section 1102 of the Bankruptcy Code. 3. This Court shall retain jurisdiction to hear and determine all matters arising from the implementation of this Order. Dated:, 2015 Richmond, Virginia UNITED STATES BANKRUPTCY JUDGE -2-
Document Page 18 of 24 EXHIBIT C Proposed Order
Document Page 19 of 24 JONES DAY North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone: (216) 586-3939 Facsimile: (216) 579-0212 David G. Heiman (pro hac vice pending) Carl E. Black (pro hac vice pending) Thomas A. Wilson (pro hac vice pending) Proposed Attorneys for Debtors and Debtors in Possession HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 Tyler P. Brown (VSB No. 28072) J.R. Smith (VSB No. 41913) Henry P. (Toby) Long, III (VSB No. 75134) Justin F. Paget (VSB No. 77949) IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA RICHMOND DIVISION In re: Alpha Natural Resources, Inc., et al., Debtors. Chapter 11 Case No. 15- ( ) (Joint Administration Requested) ORDER, PURSUANT TO SECTION 105 OF THE BANKRUPTCY CODE, (A) CONFIRMING THE PROTECTIONS OF SECTIONS 362, 365 AND 525 OF THE BANKRUPTCY CODE AND (B) GRANTING CERTAIN RELATED RELIEF This matter coming before the Court on the Motion of Debtors and Debtors in Possession, Pursuant to Section 105 of the Bankruptcy Code, for an Order (A) Confirming the Protections of Sections 362, 365 and 525 of the Bankruptcy Code and (B) Granting Certain Related Relief (the "Motion"), 1 filed by the debtors and debtors in possession in the above-captioned cases (collectively, the "Debtors"); the Court having reviewed the Motion and the First Day Declarations and having considered the statements of counsel with respect to the 1 Capitalized terms not otherwise defined herein shall have the meanings given to them in the Motion.
Document Page 20 of 24 Motion at a hearing before the Court (the "Hearing"); and the Court finding that (a) the Court has jurisdiction over this matter pursuant to 28 U.S.C. 1334, (b) this is a core proceeding pursuant to 28 U.S.C. 157(b), (c) venue is proper before this Court pursuant to 28 U.S.C. 1408 and 1409, (d) notice of the Motion and the Hearing was sufficient under the circumstances and (e) the requested relief confirms the protections of sections 362, 365 and 525 of the Bankruptcy Code; and the Court having determined that the legal and factual bases set forth in the Motion and the First Day Declarations and at the Hearing establish just cause for the relief granted herein; IT IS HEREBY ORDERED THAT: 1. The Motion is GRANTED as set forth herein. 2. Pursuant to section 362 of the Bankruptcy Code, and subject to paragraph 5 below, all persons (including individuals, partnerships, corporations and all those acting for or on their behalf) and all foreign or domestic governmental units (and all those acting for or on their behalf) are hereby stayed, restrained and enjoined from: (a) (a) (b) (c) commencing or continuing (including the issuance or employment of process) any judicial, administrative or other action or proceeding (including, but not limited to, any bankruptcy, liquidation, suspension of payments or any and all other similar proceedings in a foreign jurisdiction) against the Debtors that was or could have been commenced before the commencement of any of their chapter 11 cases; recovering a claim against any of the Debtors that arose before the commencement of any of their chapter 11 cases; enforcing, against the Debtors or against property of their estates wherever located, a judgment or order obtained before the commencement of any of their chapter 11 cases; taking any action to obtain possession of property of the Debtors' estates or to exercise control over property of their estates wherever located or interfere in any way with the conduct by the Debtors of their businesses, including, without limitation, attempts -2-
Document Page 21 of 24 to seize or reclaim any equipment, supplies or other assets the Debtors use in their businesses; (d) (e) (f) (g) taking any action to create, perfect or enforce any lien against property of the Debtors' chapter 11 estate; taking any action to create, perfect or enforce any lien against property of any of the Debtors, to the extent that such lien secures a claim that arose before the commencement of any of the Debtors' chapter 11 cases; taking any action to collect, assess or recover a claim against any of the Debtors that arose before the commencement of any of their chapter 11 cases; and offsetting any debt owing to any of the Debtors that arose before the commencement of any of their chapter 11 cases against any claim against any of the Debtors. 3. All persons and all foreign and domestic governmental units, and all those acting on their behalf, including sheriffs, marshals, constables and other or similar law enforcement officers and officials are stayed, restrained and enjoined from in any way seizing, attaching, foreclosing upon, levying against or in any other way interfering with any and all property of any of the Debtors, wherever located. 4. Pursuant to section 365 of the Bankruptcy Code, all persons (including individuals, partnerships, corporations and all those acting for or on their behalf) and all foreign or domestic governmental units (and all those acting for or on their behalf) are hereby prohibited from modifying or terminating any executory contract or unexpired lease, or any right or obligation under such contract or lease, at any time after the commencement of the Debtors' chapter 11 cases solely because of a provision in such contract or lease that is conditioned on: (h) (i) the insolvency or financial condition of any Debtor at any time before the closing of the Debtors' chapter 11 cases; or the commencement of the Debtors' chapter 11 cases. -3-
Document Page 22 of 24 5. This Order shall not affect the substantive rights of any party, nor create any rights, defenses or arguments not otherwise available under applicable law. Specifically, this Order shall not affect the exceptions contained in sections 362(b), 365(b)(4) and 365(e)(2) of the Bankruptcy Code or the right of any party in interest to seek relief from the automatic stay in accordance with section 362(d) of the Bankruptcy Code or with respect to an unexpired lease or executory contract under section 365 of the Bankruptcy Code. 6. Pursuant to section 525 of the Bankruptcy Code (and subject to the exceptions set forth in section 525(a) of the Bankruptcy Code), all foreign and domestic governmental units are prohibited and enjoined from: (a) denying, revoking, suspending or refusing to renew any permit, license, charter, franchise or other similar grant to the Debtors; (b) placing conditions upon such a grant to the Debtors; or (c) discriminating against the Debtors with respect to such a grant, solely because the Debtors are debtors under the Bankruptcy Code, may have been insolvent before the commencement of these chapter 11 cases, are insolvent during the pendency of these chapter 11 cases, are insolvent during the case but before the Debtors are granted or denied a discharge, or have not paid a debt that is dischargeable in these chapter 11 cases. 7. The Code Protections Procedures, as set forth in the Motion, are approved in their entirety. 8. The Debtors are authorized and empowered to take all actions necessary to implement the relief granted in this Order. 9. The requirement under Local Bankruptcy Rule 9013-1(G) to file a memorandum of law in connection with the Motion is hereby waived to the extent necessary. -4-
Document Page 23 of 24 10. This Court shall retain jurisdiction to hear and determine all matters arising from or related to this Order. Dated: [DATE], 2015 Richmond, Virginia UNITED STATES BANKRUPTCY JUDGE -5-
Document Page 24 of 24 WE ASK FOR THIS: Respectfully submitted, /s/ Henry P. (Toby) Long, III Tyler P. Brown (VSB No. 28072) J.R. Smith (VSB No. 41913) Henry P. (Toby) Long, III (VSB No. 75134) Justin F. Paget (VSB No. 77949) HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 and David G. Heiman (pro hac vice pending) Carl E. Black (pro hac vice pending) Thomas A. Wilson (pro hac vice pending) JONES DAY North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone: (216) 586-3939 Facsimile: (216) 579-0212 Proposed Counsel to the Debtors and Debtors in Possession CERTIFICATION OF ENDORSEMENT UNDER LOCAL BANKRUPTCY RULE 9022-1(C) Pursuant to Local Bankruptcy Rule 9022-1(C), I hereby certify that the foregoing proposed order has been endorsed by or served upon all necessary parties. /s/ Henry P. (Toby) Long, III