Bankrupt US coal company secures short-term funding

After filing for bankruptcy, Blackjewel LLC shut down the Eagle Butte and Belle Ayr coal mines near Gillette, Wyo. (MGN)
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CASPER, Wyo. (AP) - A federal judge has approved funding to allow a bankrupt coal company to maintain basic operations for a few days.

U.S. District Judge Frank Volk on Friday approved $2.9 million in debtor-in-possession financing from two lenders to Milton, West Virginia-based Blackjewel LLC.

The money in part will allow Blackjewel to pay about 140 employees who remain at work in West Virginia, Wyoming and elsewhere. The Casper Star-Tribune reports that will give the company a bit more time to find additional financing.

Without a longer-term solution, the company may be forced to sell properties including its closed Eagle Butte and Belle Ayr mines in Wyoming.

Blackjewel attorneys say the company still owes Wyoming employees over $1.6 million in compensation and retirement payments from before the company filed for bankruptcy July 1.

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Information from: Casper (Wyo.) Star-Tribune, http://www.trib.com

(Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)



 
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