United States Bankruptcy Court

Southern District of West Virginia

 

Subject: Bens Creek Group (BEN) Subsidaries: Challenge to Recent Chapter 11 Filings and Proposed Debtor-In-Possession Financing

 

Dear Honorable Chief Judge Mignault,

 

We hope this letter finds you well. We are writing to formally challenge the recent Chapter 11 filings made by Bens Creek Group plc and its wholly owned US subsidiaries, Ben's Creek Operations WV LLC, Ben's Creek Carbon LLC, and Ben's Creek Land WV LLC (collectively referred to as the "Chapter 11 Companies"), as well as the proposed Debtor-In-Possession (DIP) financing arrangement with Avani Resources Pte Ltd.

 

As a group of concerned shareholders of Bens Creek Group plc, we believe that the current filings and proposed financing are not in the best interest of shareholders, and we wish to bring several critical points to your attention.

 

1- Lack of Consultation: The decision to file for Chapter 11 bankruptcy and the selection of Avani Resources as the DIP financier were made without proper consultation with major shareholders. This lack of transparency and shareholder involvement is deeply concerning.

 

2- Potential Conflicts of Interest: Avani Resources, as a large shareholder of Bens Creek Group plc and now the proposed DIP financier, may have conflicting interests that could potentially influence the proceedings in their favor, potentially at the expense of other stakeholders.

 

3- Residual Value Concerns: The terms under the proposed DIP financing could effectively strip the PLC of any residual value, leaving shareholders with little to no return. This drastic measure appears to favor specific creditors over the wider shareholder base, other creditors including the PLC and current and laid off employees .

 

4- Governance and Communication Issues: The approach to communication and decision-making, where shareholders are informed simultaneously with the public, raises serious governance concerns that need to be addressed.

 

5- Lack of Detailed Turnaround Plan: The filings do not provide a detailed turnaround plan, and it appears more like a fire-sale process led by Avani, seeking to enhance their security package on the previous debt.

 

6- Other Options Available: There are alternative financing or bankruptcy options that could be explored to ensure the interests of shareholders are protected while also addressing the financial challenges faced by the company. It is imperative that the court considers these alternatives before proceeding with the current filings.

 

7- Shareholder Action: Shareholders have requested the convening of an Extraordinary General Meeting (EGM) to challenge the board on their decision to file for Chapter 11 and their actions leading up to this point. This demonstrates the shareholders' dissatisfaction with the current course of action and their desire for a more transparent and inclusive decision-making process.

 

Given these concerns, we respectfully request that the court thoroughly review the filings and proposed financing arrangement to ensure fairness, transparency, and the protection of the interests of all stakeholders, including shareholders.

 

We appreciate your attention to this matter and trust that the court will consider these concerns during the upcoming proceedings.

Thank you for your time and consideration.

Sincerely,

Bens Creek Shareholders 

benscreekshareholders@gmail.com