CHARLESTON, WV (LOOTPRESS) — A bankrupt coal company is seeking permission to liquidate its assets instead of reorganizing them.
A hearing in the Blackjewel coal company bankruptcy case is set for Dec. 17 in the U.S. Bankruptcy Court for the Southern District of West Virginia, The Herald-Dispatch reported.
The company filed for Chapter 11 reorganization bankruptcy in July 2019 and all but completely shut down operations, including its vast Eagle Butte and Belle Ayr mines in northeastern Wyoming. The shutdowns put about 600 employees in Wyoming and 1,100 in Appalachia out of work.
The motion filed Nov. 25 said the company does not have the money to continue the Chapter 11 process, noting that virtually all assets and operations have been sold.
The motion argues that because of the company’s “lack of operating assets permanent, negative net cash flow, and continuing financial losses, there is no reason to continue this proceeding as a Chapter 11 and incur the substantial and unnecessary administrative expenses attendant to doing so.”
If the motion for Chapter 7 liquidation is granted, Blackjewel LLC would effectively cease to exist.