Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Energy

James River Coal Chapter 11 Petition Filed

James River Coal and its subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Eastern District of Virginia, lead case number 14-31848. The Company, which produces coal in Central Appalachia and the Illinois Basin and sells metallurgical, bituminous steam and industrial-grade coal, is represented by Tyler P. Brown of Hunton & Williams. In conjunction with its restructuring, the Company will enter into a $110 million debtor-in-possession financing facility with several large financial funds. Upon approval by the Court, the new financing and cash generated from James River Coal’s ongoing operations will be used to support the business during the restructuring process. Peter T. Socha, chairman and C.E.O. comments, “The coal markets in the U.S. have changed dramatically during the past several years. Some of these changes are cyclical due to continued weakness in the real economy. Other of the changes are more permanent like changes in government environmental regulations, improved methods to produce natural gas, and switching between coal basins by domestic power utilities. We have made a number of large and significant changes to our mine operations and administrative overhead in response to the changes in the coal markets. Now we need to adjust our balance sheet and debt structure to align ourselves to the new industry. We took this action to restructure under Chapter 11 because it will allow us to adjust the balance sheet and improve our liquidity in a controlled and definitive manner. We will also continue to explore and evaluate potential strategic alternatives for the Company, such as a capital investment through a plan of reorganization or a sale of one or more portions of the Company.”

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