Trustee claims defendants owe trust fund $3 million

By Molly English-Bowers | May 27, 2016

CHARLESTON – The trustee of a creditors trust is suing over an alleged non-payment of $3 million into the fund, as is purportedly stipulated under a bankruptcy agreement.

CHARLESTON – The trustee of a creditors trust is suing over an alleged non-payment of $3 million into the fund, as is purportedly stipulated under a bankruptcy agreement.

Ellen Arvin Kennedy, solely in her capacity as liquidating trustee of the Trinity Unsecured Creditors Trust, filed the suit April 14 in Kanawha Circuit Court against New Trinity Coal Inc., New Resources Inc., Frasure Creek Mining LLC, Deep Water Resources LLC, Hughes Creek Terminal LLC, Trinity Coal Corporation, Trinity Parent Corporation, Trinity Coal Marketing LLC, Little Elk Mining Company LLC, Trinity Coal Partners LLC, Bear Fork Resources LLC, Banner Coal Terminal LLC, Falcon Resources LLC, Prater Branch Resources LLC, North Spring Resources LLC, Levisa Fork Resources LLC, Trinity RMG Holdings LLC, RMG Inc., and Essar Global Fund Limited.

Kennedy filed the suit to enforce the provisions of a Chapter 11 Plan in a bankruptcy case involving the defendants, according to the claim. Under the bankruptcy agreement, a total of $9 million was to be paid to the trustee, the suit alleges; adding that so far, $6 million has been paid, but the remaining $3 million, due Jan. 31, has not, an alleged breach of their contract. 


Kennedy seeks a judgment for nonpayment of the $3 million plus interest, for default under the agreement, the payment itself and any other relief the court deems proper. She is represented by Katherine B. Capito and Ian Henry of Dinsmore & Shohl LLP in Charleston.

Kanawha Circuit Court Case number 16-C-567

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