CHARLESTON, W.Va. (AP) — 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.
Milton-based Blackjewel LLC filed for Chapter 11 bankruptcy protection Monday in U.S. Bankruptcy Court for southern West Virginia. News outlets reported the company cited at least $500 million owed in liabilities.
Blackjewel follows other major U.S. coal producers that have filed for bankruptcy protection in recent years, including Englewood, Colorado-based Westmoreland Coal Co. last October and Gillette, Wyoming-based Cloud Peak Energy in May.
St. Louis-based Peabody Energy Corp. emerged from bankruptcy protection in 2017 and both St. Louis-based Arch Coal and Bristol, Virginia-based Alpha Natural Resources emerged in 2016.
“The entire U.S. mining complex has been impacted by these events,” Blackjewel CEO Jeff Hoops said in a court filing. “The entire industry either has gone through, or is currently going through, a period of financial distress and reorganization.”
Hoops said the company and its partners had insufficient cash to operate and require additional liquidity, especially to pay employees’ wages and benefits.
“We are confident that this restructuring will solidify Blackjewel’s position as a significant participant in the (U.S.) coal market,” Hoops said in a separate statement. “Having carefully reviewed the options available, we determined that this court-supervised process is the best way to strengthen our financial foundation and position Blackjewel to remain a trusted partner to our vendors and customers.”
Blackjewel has about 1,100 employees in its eastern division at mines in Kentucky, Virginia and West Virginia. It also operates two mines with about 600 workers in northeast Wyoming.
The Wyoming mines closed Monday after the bankruptcy filing. Blackjewel recently missed a $1 million tax payment owed to Campbell County.
“This closure is hardest on the individuals who work at these important mines and their families, and our most immediate concerns lay with them,” Wyoming Gov. Mark Gordon said in a statement. “We are not unprepared for this set of circumstances and are eager to do all we can for the hardworking employees of these mines.”
Gordon planned to meet with local officials to discuss the state’s response to the closings. Gordon said he has directed a state agency to provide workforce assistance to the mine workers.
It wasn’t immediately known whether the company’s entire eastern operations shut down as well. The mayor of Cumberland, Kentucky, told the Lexington Herald Leader at least two miners told him the company closed its local operations Monday.
According to the Mine Safety and Health Administration, Blackjewel and affiliate Revelation Energy LLC were the nation’s sixth-largest U.S. coal producer in 2017, the latest year available.
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Gruver reported from Cheyenne, Wyoming
