Trinity Coal Creditors File Involuntary BankruptcyDawn McCarty
Trinity Coal Corp. creditors with about $104.3 million in claims filed an involuntary Chapter 11 bankruptcy petition for the Essar Group unit.
Units of Credit Agricole SA, ING Groep NV and Natixis filed the petition today in U.S. Bankruptcy Court in Lexington, Kentucky. The creditors also filed an involuntary petition against Trinity affiliate, Frasure Creek Mining LLC.
Essar Group, the Indian business group controlled by billionaire brothers Shashikant and Ravikant Ruia, acquired Trinity Coal in 2010 for $600 million.
“Trinity’s current management has failed to negotiate with Trinity’s creditors,” Credit Agricole said in court papers seeking the appointment of a Chapter 11 trustee.
Essar Group officials didn’t immediately respond to an after-hours request seeking comment on the involuntary filing.
The case is In re Trinity Coal Corp., 13-50364, U.S. Bankruptcy Court, Eastern District of Kentucky (Lexington).