Representation: Members of Creditors’ Committee
Bankruptcy – Western District of Pennsylvania
Situation: At the time it filed for Chapter 11, Benjamin Coal Company was one of Pennsylvania’s largest privately-held coal mining operations. Three members of the official creditors’ committee, with claims of approximately $600,000, $400,000 and $200,000, hired Bernstein and Bernstein, P.C. to represent them.
Action: The law firm counseled the creditors concerning Benjamin Coal Co.’s secured creditors, accounting practices, environmental practices, as well as its business and bankruptcy strategies. The creditors’ committee succeeded in negotiating and confirming a reorganization plan providing for full payment to creditors. Unfortunately, a subsequent default by the debtor, followed by conversion to a Chapter 7 proceeding, will result in a diminished distribution.