Foresight’s Bankruptcy Plan Knocked for Liability Waivers

Foresight Energy LP’s Chapter 11 plan waives liability for too many parties that aren’t in bankruptcy and shouldn’t be approved, the Justice Department’s bankruptcy watchdog says.

The U.S. Trustee’s Office filed its objection with the U.S. Bankruptcy Court for the Eastern District of Missouri Thursday, a day after the bankrupt coal mining company modified its plan to set aside $1 million more for unsecured creditors.

St. Louis-based Foresight initially submitted its plan in May after filing for Chapter 11 protection in March.

The plan’s releases for third parities are “overly broad” and absolve too many non-debtor parties “from all sorts ...