Fate of Blackjewel Mines Rest on Bidding Process
A federal judge on Friday approved a bidding process for mines owned by bankrupt coal operator Blackjewel LLC.
U.S. Bankruptcy Judge Frank Volk in Charleston agreed with a motion by Blackjewel on a proposal made by Bristol, Tennessee-based Contura Energy.
Contura has offered $20.6 million as the stalking horse bidder for three mines owned by Milton-based Blackjewel. The purchase could put hundreds back to work at the Eagle Butte and Belle Ayr mines in Wyoming and Pax Surface Mine in Scarbro, West Virginia.
They’ve been closed since Blackjewel filed for Chapter 11 bankruptcy protection July 1. Blackjewel also operates mines in Kentucky and Virginia, and the fate of those depends on the outcome of the bidding process.
If other qualifying bids are made by a Wednesday deadline, an auction would be held next Thursday. Lerner said any party could bid on any combination of Blackjewel’s assets.
Source: MG News
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