Exhibit 10.1F

 

 

SUPPLEMENT TO
FORBEARANCE AGREEMENT

 

This SUPPLEMENT TO FORBEARANCE AGREEMENT, dated as of June 18, 2013 (this
“Supplement”), is a supplement to the Forbearance Agreement, dated as of May 14,
2013 (the “Forbearance Agreement”), relating to the Credit Agreement dated as of
July 6, 2010 (as amended or otherwise modified, the “Credit Agreement”) among
Oxford Mining Company, LLC, an Ohio limited liability company (the “Borrower”),
the banks, financial institutions and other institutional lenders party thereto
(together with their respective successors and assigns, the “Lenders”), Fifth
Third Bank, as the Initial Issuing Bank, Citibank, N.A., as the Swing Line Bank,
and Citicorp USA, Inc., as administrative agent for the Lenders (the
“Administrative Agent”), and guaranteed by Oxford Resource Partners, LP, a
Delaware limited partnership (the “MLP”), and each of the Subsidiary Guarantors,
each listed on Schedule I hereto (collectively, the “Guarantors”).

WITNESSETH:

WHEREAS, the Borrower, the Guarantors and certain of the Lenders entered into
the Forbearance Agreement, pursuant to which, inter alia, such Lenders agreed to
forbear from exercising default-related remedies available under the Credit
Agreement against the Borrower and the Guarantors on account of the Specified
Defaults for a limited period of time and upon the terms and conditions set
forth therein;

WHEREAS, the Borrower has requested that the Lenders party hereto (the
“Participant Lenders”) extend the “Forbearance Period” contemplated by the
Forbearance Agreement to pursue a refinancing of the Obligations; and

WHEREAS, except as otherwise expressly modified hereby, the terms of the
Forbearance Agreement are and will remain in full force and effect;

NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1. Defined Terms; References. Unless otherwise specifically defined
herein, each term used herein that is defined in the Credit Agreement and is not
defined in the Forbearance Agreement shall have the meaning assigned to such
term in the Credit Agreement. Unless otherwise specifically defined herein, each
term used herein that is defined in the Forbearance Agreement shall have the
meaning assigned to such term in the Forbearance Agreement. Each reference to
“hereof”, “hereunder”, “herein” and “hereby” and each other similar reference
and each reference to “this Agreement” and each other similar reference
contained in the Forbearance Agreement shall, after this Supplement becomes
effective, refer to the Forbearance Agreement as modified hereby.

 

 
 

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SECTION 2. Extension. Clause (i) of the definition of “Forbearance Period” in
Section 1 of the Forbearance Agreement is amended by changing the reference to
“June 15, 2013” to “July 1, 2013”.

SECTION 3. Acknowledgments and Undertakings.

The Borrower and the Guarantors acknowledge and agree that:

(a)     The Loan Parties under the Loan Documents, without defense, counterclaim
or offset of any kind, are jointly and severally indebted and liable to the
Lenders in the aggregate principal amount of approximately $147,500,000 in
respect of Advances made by the Lenders and in the aggregate face amount of
$10,925,000 in respect of Letters of Credit issued by the Issuing Bank, plus
interest thereupon and fees, expenses (including any attorneys’ and financial
advisors’ fees that are chargeable or reimbursable under the Loan Documents),
charges and other obligations incurred in connection therewith as provided in
the Loan Documents (collectively, the “Outstanding Indebtedness”), which
Outstanding Indebtedness is secured by valid, perfected and enforceable liens on
and security interests in certain real and personal property of the Loan
Parties.

(b)     As contemplated by Section 2(c) of the Forbearance Agreement, Davis Polk
& Wardwell LLP has been engaged to act as special counsel to the Administrative
Agent and Zolfo Cooper, LLC has been engaged to act as financial advisor to the
Administrative Agent. Without limiting the generality of Section 8.05 of the
Credit Agreement, the Borrower and the Guarantors are obligated to reimburse the
reasonable fees and expenses of Davis Polk & Wardwell LLP and Zolfo Cooper, LLC.

(c)     This Supplement shall constitute a Loan Document for all purposes of the
Credit Agreement and the other Loan Documents.

SECTION 4. Representations and Warranties. To induce the Administrative Agent
and the Participant Lenders to execute and deliver this Supplement, the Borrower
and the Guarantors represent and warrant that:

(a)     The execution, delivery and performance by the Borrower and the
Guarantors of this Supplement have been duly authorized by all necessary
corporate, limited liability company or limited partnership, as applicable,
action. This Supplement and the Forbearance Agreement as supplemented hereby
constitute the legal, valid and binding obligations of the Borrower and the
Guarantors, enforceable against the Borrower and the Guarantors in accordance
with their terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability.

 

 
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(b)     No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any governmental authority, agency, department,
commission, board or instrumentality of any foreign country, the United States,
any state of the United States, or any political subdivision thereof is
necessary or required in connection with the execution, delivery or performance
by, or enforcement against, the Borrower or the Guarantors of this Supplement.

(c)     As of the date hereof, no Default or Event of Default exists, other than
the Specified Defaults.

(d)     All information (other than projections or forecasts) heretofore
furnished by or on behalf of the Borrower to the Administrative Agent and the
Lenders for purposes of or in connection with this Supplement and the
Forbearance Agreement does not, and all such information hereafter furnished by
or on behalf of the Borrower to the Administrative Agent and the Lenders will
not, taken as a whole, contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in
light of the circumstances under which they were or will be made, not materially
misleading, and all projections and forecasts included in any such information
have been and will be based upon good faith estimates and assumptions believed
by the Borrower’s senior management to be reasonable at the time delivered, and
at the time delivered represent senior management’s reasonable judgment of the
future performance of the operations of the Borrower and the Guarantors.

SECTION 5. Release of Lender Liability.

(a)     In consideration of, among other things, the extension of forbearance
provided for herein, each of the Borrower and each Guarantor, on behalf of
itself and its subsidiaries and its and their successors and assigns (the
“Company Parties”), jointly and severally releases, acquits and forever
discharges the Administrative Agent, the Issuing Bank, the Swing Line Bank and
each Lender (collectively, the “Lender Parties”), and their respective
subsidiaries, parents, affiliates, officers, directors, employees, agents,
attorneys, partners, successors and assigns, both present and former
(collectively, the “Lenders’ Affiliates”), from any and all manner of actions,
causes of action, suits, debts, controversies, damages, judgments, executions,
claims (including, without limitation, crossclaims, counterclaims and rights of
set-off and recoupment) and demands whatsoever, whether known or unknown,
whether now existing or hereafter arising, whether asserted or unasserted, in
contract, tort, law or equity, which the Borrower or any other Company Party has
or may have against any of the Lender Parties and/or the Lenders’ Affiliates by
reason of any action, failure to act, matter or thing whatsoever arising from or
based on facts occurring prior to the date hereof, including, without
limitation, any claim or defense that relates to, in whole or in part, directly
or indirectly, (i) the making or administration of the Advances, including,
without limitation, any such claims and defenses based on fraud, mistake,
duress, usury or misrepresentation, or any other claim based on so-called
“lender liability theories,” (ii) any covenants, agreements, duties or
obligations set forth in the Loan Documents, (iii) any actions or omissions of
any of the Lender Parties and/or the Lenders’ Affiliates in connection with the
initiation or continuing exercise of any right or remedy contained in the Loan
Documents or at law or in equity, (iv) lost profits, (v) loss of business
opportunity, (vi) increased financing costs, (vii) increased legal or other
administrative fees, or (viii) damages to business reputation.

 

 
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(b)     In entering into this Supplement, the Borrower and the Guarantors have
consulted with and been represented by counsel and expressly disclaim any
reliance on any representations, acts or omissions by any of the Lender Parties
or Lenders’ Affiliates and hereby acknowledge and agree that the validity and
effectiveness of the releases set forth above do not depend in any way on any
such representations, acts and/or omissions or the accuracy, completeness or
validity thereof. The provisions of this Section 5 shall survive the termination
of the Credit Agreement and the other Loan Documents and payment in full of all
amounts owing thereunder.

SECTION 6. Governing Law. This Supplement shall be governed by and construed in
accordance with the laws of the State of New York without regard to any
conflicts of law provisions that would make the laws of any other jurisdiction
applicable.

SECTION 7. Counterparts. This Supplement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures were upon the same instrument.

SECTION 8. Severability. The invalidity, illegality or unenforceability of any
provision in or obligation under this Supplement in any jurisdiction shall not
affect or impair the validity, legality or enforceability of the remaining
provisions or obligations under this Supplement or of such provision or
obligation in any other jurisdiction.

SECTION 9. Effectiveness. This Supplement shall become effective as of the date
hereof on the date (the “Supplemental Forbearance Effective Date”) when the
following conditions are satisfied:

(a)     the Administrative Agent shall have received from the Borrower, the
Guarantors and the Required Lenders a counterpart hereof signed by such party or
facsimile or other written confirmation (in form satisfactory to the
Administrative Agent) that such party has signed a counterpart hereof; and

(b)     the Administrative Agent shall have received certificates of the chief
financial officer of the Borrower and the Guarantors certifying that, to the
best of his knowledge, the representations and warranties made by the Borrower
and the Guarantors pursuant to Section 4 of this Agreement are true and correct
on and as of the Supplemental Forbearance Effective Date.

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IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be duly
executed as of the date first above written.

 

BORROWER: 

OXFORD MINING COMPANY, LLC,

an Ohio limited liability company

 

 

 

By:     /s/Bradley W. Harris               

Name: Bradley W. Harris

Title: SeniorVice President & CFO

 

 
 

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GUARANTORS:                                                 OXFORD RESOURCE
PARTNERS, LP, a Delaware limited partnership

 

                                                                              By:     Oxford
Resources GP, LLC, a Delaware limited liability company, its general partner

 

 

By: /s/ Bradley W. Harris               

Name: Bradley W. Harris

Title: Senior Vice President & CFO

 

OXFORD MINING COMPANY – KENTUCKY, LLC, a Kentucky limited liability company

 

 

By: /s/ Bradley W. Harris               

Name: Bradley W. Harris

Title: Senior Vice President & CFO

 

DARON COAL COMPANY, LLC, an Ohio limited liability company

 

 

By: /s/ Bradley W. Harris               

Name: Bradley W. Harris

Title: Vice President & Assistant Treasurer

 

 

OXFORD RESOURCE FINANCE CORPORATION, a Delaware corporation

 

By: /s/ Bradley W. Harris               

Name: Bradley W. Harris

Title: Senior Vice President & CFO

 

OXFORD CONESVILLE, LLC, an Ohio limited liability company

 

 

By: /s/ Bradley W. Harris               

Name: Bradley W. Harris

Title: Senior Vice President & CFO

 

 

 
 

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CITICORP USA, INC., as Administrative Agent

   

By:

/s/ Alfred W. Griffin

 

Name:

Alfred W. Griffin

 

Title:

Vice President

 

 

Address for Notices:

 

Citicorp USA, Inc.

1615 Brett Road OPS3

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Email: Suzanna.Gallagher@citi.com

 

With a copy to:

 

Citicorp USA, Inc.

388 Greenwich Street

New York, New York 10013

Attention: Alfred Griffin

Email: Alfred.W.Griffin@citi.com

 

 

With a copy to:

 

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

Attention: Damian S. Schaible

Email: Damian. schaible@davispolk.com

 

 
 

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Citibank, N.A., as a Lender

   

By:

/s/ Alfred W. Griffin

 

Name:

Alfred W. Griffin

 

Title:

Vice President

 

 

 
 

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Fifth Third Bank, as a Lender

   

By:

/s/ Lucas J. Barnett

 

Name:

Lucas J. Barnett

 

Title:

Vice President

 

 

 
 

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Barclays Bank PLC, as a Lender

   

By:

/s/ Robert Silverman

 

Name:

Robert Silverman

 

Title:

Director

 

 

 
 

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Caterpillar Financial Services Corporation, as a Lender

   

By:

/s/ Timothy Logan

 

Name:

Timothy Logan

 

Title:

Global Portfolio Manager - Mining

 

 

 
 

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Credit Suisse AG, Cayman Islands Branch,

as a Lender

   

By:

/s/ Didier Siffer 

 

Name:

Didier Siffer

 

Title:

Authorized Signatory

     

By:

/s/ Megan Kane 

 

Name:

Megan Kane

 

Title:

Authorized Signatory

 

 

 
 

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The Huntington National Bank, as a Lender

   

By:

/s/ John S. Brian

 

Name:

John S. Brian

 

Title:

Vice President

 

 

 
 

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Raymond James Bank, N.A., as a Lender

   

By:

/s/ H. Fred Coble, Jr.

 

Name:

H. Fred Coble, Jr.

 

Title:

Senior Vice President

 

 

 
 

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SOCIÉTÉ GÉNÉRALE, as a Lender

   

By:

/s/ Daniel Ota

 

Name:

Daniel Ota

 

Title:

Director

 

 

 
 

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Wells Fargo, as a Lender

   

By:

/s/ Jeffrey Faunce

 

Name:

Jeffrey Faunce

 

Title:

Assistant Vice President

 

 

 
 

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SCHEDULE I

 

GUARANTORS

 

1.

Oxford Resource Partners, LP, a Delaware limited partnership

 

2.

Oxford Mining Company – Kentucky, LLC, a Kentucky limited liability company

 

3.

Daron Coal Company, LLC, an Ohio limited liability company

 

4.

Oxford Resource Finance Corporation, a Delaware corporation

 

5.

Oxford Conesville, LLC, an Ohio limited liability company