Representatives for Montana Tunnels Mine have filed a motion which would extend its exclusivity period for 60 days and provide it more time to file a Chapter 11 plan.
If the court grants the extension, Montana Tunnels will have until June 5 to file a proposed Chapter 11 plan and until Aug. 2 to obtain a confirmation of the plan.
According to the April 4 motion by Montana Tunnels, the decision to extend this period depends on a variety of factors, including the size and complexity of the case, the time needed to negotiate a plan, whether the debtor is paying its bills as they become due and more.
“This is a complex case because of the interplay between [Montana Tunnels Mining Inc.’s] ability to reorganize its debts and the power of the Montana Department of Environmental Quality which are not amenable to modification through a Chapter 11 plan,” reads the motion, adding that Montana Tunnels needs time to “analyze the economic practicability to reopening and operating its mill located with the area subject to the DEQ’s environmental regulatory authority.”
The motion also stated that Montana Tunnels is attempting to reorganize without losing its $18 million reclamation bond with the DEQ.
As of April 18, the court had yet to make an order on the matter.
In the meantime, Montana Tunnels has agreed to pay Rocky Mountain Supply $8,620 for 2,000 gallons of dyed diesel #2 fuel, after Rocky Mountain motioned the court for the payment.
The order for fuel was placed on Nov. 28, 2022 and delivered on Dec. 1. At the time of delivery, Montana Tunnels provided a check to the fuel driver.
According to court documents, Rocky Mountain held the check for a week and attempted to deposit it on Dec. 8 – three days after Montana Tunnels had filed for bankruptcy and its accounts were frozen.
“Debtor purposefully failed to notify [Rocky Mountain Supply Inc.] that it would not be paying for the fuel when it was ordered and which was received less than two business days from filing its bankruptcy petition,” read Rocky Mountain’s motion.
Although Montana Tunnels refuted the claim that the company had expected the check to bounce, they agreed that Rocky Mountain should be paid.
“[Montana Tunnels Mine Inc.] does not contest that the fuel was delivered within 20 days of commencement of this case … Rocky Mountain Supply Inc. … is entitled to an allowance of an administrative claim for the value of the fuel,” read Tunnel’s response, written by company attorney James Patten. “[Tunnels] does dispute [Rocky Mountain’s] statement [that Tunnels] knew ‘full well that the check it had just issued and handed to the [Rocky Mountain] driver would not be paid.’ Tunnels expected the check ‘handed to the [Rocky Mountain] driver’ would have been promptly deposited and not held for a week.”
Patten went on to explain that Tunnels was not obligated to give Rocky Mountain notice before filing for bankruptcy.
“Wherefore, the Debtor, Montana Tunnels Mining Inc. respectfully prays that this Court allow Rocky Mountain Supply Inc.’s request for ultimate payment,” read Tunnel’s motion.
Before the court could make an order on the situation, the two parties reached an agreement for payment.
Although the stipulation allows for Tunnels to pay Rocky Mountain Supply, there is not a timeline or immediacy to the payment.
