Entry into a Material Definitive Agreement
On August 8, 2019, Cloud Peak Energy Inc. (the
) and certain of its direct and indirect subsidiaries (the
Cloud Peak Entities
) entered into Amendment No. 4 to the Cloud Peak Entities Superpriority Senior Secured Priming Debtor-in-Possession Credit Agreement (the
DIP Credit Agreement
, and such amendment,
Amendment No. 4
) with the lenders party thereto and Ankura Trust Company, LLC, as Administrative Agent and Collateral Agent. Amendment No. 4, among other things, extends the milestone dates set forth in the DIP Credit Agreement by which (i) an auction must commence for substantially all assets of the Cloud Peak Entities and (ii) a sale order under Section 363 of Title 11 of the U.S. Code by the United States Bankruptcy Court for the District of Delaware (the
) must be entered.
The foregoing description is only a summary of Amendment No. 4 and is qualified in its entirety by reference to the full text of Amendment No. 4, which is filed as Exhibit 10.1 and is incorporated by reference herein.
Cautionary Note Regarding Forward-Looking Statements
This Report on Form 8-K contains forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are not statements of historical facts and often contain words such as may, will, expect, believe, anticipate, plan, estimate, seek, could, should, intend, potential, or words of similar meaning. Forward-looking statements are based on managements current expectations, beliefs, assumptions and estimates regarding the Company, industry, economic conditions, government regulations and energy policies and other factors. Forward-looking statements may include, for example, the anticipated timing and outcome of the auction process for the sale of all or substantially all of the Cloud Peak Entities assets, the magnitude of any impairments to the Cloud Peak Entities assets and the impacts of such impairments on the investments of securityholders, statements regarding the Board of Directors strategic evaluation process, the Companys operational and financial priorities, the Companys responses to the structural changes in the U.S. coal industry and other statements regarding the Companys plans, strategies, prospects and expectations concerning its business, operating results, financial condition, liquidity and other matters that do not relate strictly to historical facts. These statements are subject to significant risks, uncertainties, and assumptions that are difficult to predict and could cause actual results to differ materially and adversely from those expressed or implied in the forward-looking statements, including risks and uncertainties regarding the Companys ability to continue as a going concern, potential appeals of the Bankruptcy Courts order approving the DIP Credit Agreement, the Companys ability to successfully complete a sale process under Chapter 11 (
) of Title 11 of the U.S. Code; potential adverse effects of the Chapter 11 cases on the Companys liquidity and results of operations; the Companys ability to obtain timely approval by the Bankruptcy Court with respect to the motions filed in the Chapter 11 cases; objections to the sale process or other pleadings filed that could protract the Chapter 11 cases; employee attrition and the Companys ability to retain senior management and other key personnel due to the distractions and uncertainties, including its ability to provide adequate compensation and benefits during the Chapter 11 cases; the Companys ability to comply with the restrictions imposed by its Accounts Receivable Securitization Program, the DIP Credit Agreement and other financing arrangements; the Companys ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities as a result of the Chapter 11 filing; the effects of the bankruptcy petitions on the Company and on the interests of various constituents, including holders of the Companys common stock; the Bankruptcy Courts rulings in the Chapter 11 cases, and the outcome of the Chapter 11 cases generally; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the proceedings; risks associated with third-party motions in the Chapter 11 cases, which may interfere with the Companys ability to consummate a sale; and increased administrative and legal costs related to the Chapter 11 process and other litigation and inherent risks involved in a bankruptcy process. Forward-looking statements are also subject to the risk factors and cautionary language described from time to time in the reports and registration statements the Company files with the Securities and Exchange Commission, including those in Item 1A - Risk Factors in its most recent Form 10-K and any updates thereto in its Forms 10-Q and current reports on Form 8-K. Additional factors, events, or uncertainties that may emerge from time to time, or those that the Company currently deems to be immaterial, could cause its actual results to differ, and it is not possible for the Company to predict all of them. The Company makes forward-looking statements based on currently available information, and it assumes no obligation to, and expressly disclaim any obligation to, update or