JRCCQ: James River Coal Requests More Time to Crea
Post# of 777
Posted On: 06/30/2014 1:52:56 PM
JRCCQ: James River Coal Requests More Time to Create Bankruptcy Plan 1:44 PM 6/30/14
By Sara Randazzo
James River Coal Co. (JRCCQ) needs more time to create a restructuring plan, the Appalachian coal miner told a bankruptcy court last week, as it continues to weigh whether to reorganize the company or liquidate its assets.
In a Thursday request, James River Coal asked U.S. Bankruptcy Court Judge Kevin Huennekens in Richmond, Va., for permission to file its proposed plan by Nov. 13, an extension of 100 days.
Since seeking Chapter 11 protection in April, James River Coal has been soliciting bidders to either purchase its assets outright or submit the terms of a reorganization plan that would include investment in the company. Bids are due June 30, with an auction scheduled for July 8.
"The debtors will not be in a position to file a plan until the outcome of the strategic restructuring transaction process is determined," James River Coal lawyers said in the filing.
While details of any formal bids were not immediately available Monday, James River said in the Thursday filing that it had fielded preliminary indications of interest "from potential strategic and financial bidders."
James River Coal currently employs more than 1,000 people and operates six active mining operations in Kentucky, West Virginia and Indiana, according to filings.
In early June, Judge Huennekens approved the sale of two idled mining operations, a move that James River said will save it more than $1 million per month.
James River filed for bankruptcy after skipping an interest payment on its debt amid mounting losses and tight liquidity. The coal industry, including James River, has seen sharp declines as the cost of natural gas---a competing energy source---has fallen and as gas demand has risen in the U.S.
The company, which ships coal to electricity generators, industrial users and steel companies, entered bankruptcy with more than $800 million in overall debt.
If the extension is approved, James River will have until mid-January to solicit votes on the restructuring plan from creditors. The company noted in its extension request that such a timeline would coincide with the January 12 maturity date of its $110 million bankruptcy loan.
--Joseph Checkler contributed to this article.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Sara Randazzo at sara.randazzo@wsj.com.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
> Dow Jones Newswires
June 30, 2014 13:44 ET (17:44 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
By Sara Randazzo
James River Coal Co. (JRCCQ) needs more time to create a restructuring plan, the Appalachian coal miner told a bankruptcy court last week, as it continues to weigh whether to reorganize the company or liquidate its assets.
In a Thursday request, James River Coal asked U.S. Bankruptcy Court Judge Kevin Huennekens in Richmond, Va., for permission to file its proposed plan by Nov. 13, an extension of 100 days.
Since seeking Chapter 11 protection in April, James River Coal has been soliciting bidders to either purchase its assets outright or submit the terms of a reorganization plan that would include investment in the company. Bids are due June 30, with an auction scheduled for July 8.
"The debtors will not be in a position to file a plan until the outcome of the strategic restructuring transaction process is determined," James River Coal lawyers said in the filing.
While details of any formal bids were not immediately available Monday, James River said in the Thursday filing that it had fielded preliminary indications of interest "from potential strategic and financial bidders."
James River Coal currently employs more than 1,000 people and operates six active mining operations in Kentucky, West Virginia and Indiana, according to filings.
In early June, Judge Huennekens approved the sale of two idled mining operations, a move that James River said will save it more than $1 million per month.
James River filed for bankruptcy after skipping an interest payment on its debt amid mounting losses and tight liquidity. The coal industry, including James River, has seen sharp declines as the cost of natural gas---a competing energy source---has fallen and as gas demand has risen in the U.S.
The company, which ships coal to electricity generators, industrial users and steel companies, entered bankruptcy with more than $800 million in overall debt.
If the extension is approved, James River will have until mid-January to solicit votes on the restructuring plan from creditors. The company noted in its extension request that such a timeline would coincide with the January 12 maturity date of its $110 million bankruptcy loan.
--Joseph Checkler contributed to this article.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Sara Randazzo at sara.randazzo@wsj.com.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
> Dow Jones Newswires
June 30, 2014 13:44 ET (17:44 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
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