A coal company that filed for Chapter 11 bankruptcy protection is preparing to sell its mines.
The Lexington Herald- Leader reports Judge Gregory Schaaf of the U.S. Bankruptcy Court in the Eastern District of Kentucky said during a hearing Tuesday that he would approve a sale order filed by Cambrian Coal LLC.
An affidavit from a financial adviser to Cambrian says the coal producer plans to sell assets to three companies. The companies are expected to buy mines in Kentucky and Virginia. The mines employ nearly 700 workers.
The adviser says Cambrian’s ability to continue operations beyond this week is “highly uncertain.” The affidavit says Cambrian wouldn’t have been able to pay employees if it had not received a recent $2 million deposit from one of the three buyers.
American Resources Corporation, a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and distribution of metallurgical carbon to the steel industry, announced Tuesday that it has been named the primary bidder for certain assets offered for sale through the bankruptcy proceedings of Cambrian Holding Company, Inc.
Under the proposal, American Resources would acquire all assets and operations of Perry County Coal LLC (“PCC”), an operating subsidiary of Cambrian Coal LLC. Perry County Coal is a mining complex located near Hazard.
The Perry County Coal complex consists of three active mines (two underground mines and one surface mine) with access to over 110 million tons of carbon deposits consisting primarily of high quality soft coking and PCI carbon, which serves the global steelmaking and infrastructure markets, as well as industrial stoker carbon. Historically, the PCC complex has produced approximately one million tons of carbon per year.
Pursuant to the terms of the proposed transaction, American Resources would acquire the specific assets free and clear of all liens, claims, interests and encumbrances, and would assume no liabilities other than all reclamation obligations under applicable law or permits and any other liabilities expressly agreed to by American Resources Corporation.
The proposed purchase of these assets will be governed by the Court-supervised process under Section 363 of the U.S. Bankruptcy Code and is subject to Court-approved bidding procedures.