Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

James River Coal Chooses Blackhawk Mining as Lead Bidder

Don't Miss Out —
Follow us on:

Aug. 18 (Bloomberg) -- Bankrupt James River Coal Co., after repeatedly postponing an asset auction, chose a unit of Blackhawk Mining LLC as the lead bidder, with an opening offer of $50 million.

The Blackhawk unit will be the so-called stalking horse at the auction to be held today in New York, according to papers filed in U.S. Bankruptcy Court in Richmond, Virginia. A sale hearing to consider Blackhawk’s or other possible bids is scheduled for Aug. 20 in Richmond.

Blackhawk Mining, based in Lexington, Kentucky, operates mines and coal-processing facilities. James River’s Hamden mining complexes, assets of the Logan & Kanawha Coal Co. and the Triad complex are up for sale, according to court filings. The buyer will also assume some liabilities.

James River, based in Richmond, sought bankruptcy protection from creditors April 7, listing more than $800 million in debt and $1 billion in assets. Declining coal prices caused it to idle a dozen mines.

Like others in its industry, the company is confronting a glut of coal, the switching of coal-fired electrical power plants to less expensive natural gas and increasingly costly federal regulations.

As part of its bankruptcy, James River in May won court approval to borrow as much as $110 million, over objections from unsecured creditors.

The case is In re James River Coal Co., 14-bk-31848, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).

To contact the reporters on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net; Dawn McCarty in Wilmington at dmccarty@bloomberg.net

To contact the editors responsible for this story: Andrew Dunn at adunn8@bloomberg.net David Glovin

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.