U.S. judge rejects bankrupt coal operator's new financing plan

Associated Press
Wednesday, July 3, 2019 2:00 p.m. | Wednesday, July 3, 2019 2:00 p.m.

1369720_web1_1369720-31749323a2bc4512a7c50f19301bffc2

This photo shows the entrance to Eagle Butte mine seen taped in Gillette, Wyo., Tuesday, July 2, 2019. The CEO of one of the nation’s largest coal producers says he’s confident the company will bounce back despite the shutdown of several mines after it filed for federal bankruptcy protection.

1369720_web1_1369720-0c6c645ec3134e0d909350c237b02959

Gov. Mark Gordon attends a public meeting about Blackjewel mine closures, at the Campbell County Courthouse in Gillette, Wyo., Tuesday, July 2, 2019. The CEO of one of the nation’s largest coal producers says he’s confident the company will bounce back despite the shutdown of several mines after it filed for federal bankruptcy protection.

CHARLESTON, W.Va. — A federal judge has rejected a proposed new financing agreement for a West Virginia coal operator that filed for bankruptcy protection earlier this week.

News outlets report a bankruptcy judge in Charleston said in a ruling released Wednesday that Blackjewel LLC must explore more alternatives in its Chapter 11 bankruptcy filing.

Milton-based Blackjewel said in a filing Tuesday that without the agreement, it would shift to Chapter 7, which would seek asset liquidation.

The nation’s sixth largest coal producer had been granted the emergency hearing on its plan to continue with new lenders after being denied a $20 million line of credit to keep its coal operations running.

The company’s two Wyoming mines abruptly closed after Monday’s bankruptcy filing.

Blackjewel also has mines in Kentucky, Virginia and West Virginia.