Cambrian Coal Company’s long effort to buy TECO Coal Company has fallen through, but TECO’s parent firm announced Monday morning that it is now in negotiations to sell the company to a “new buyer” that has the “financial capability” required to complete the purchase on or before July 3.
In a statement released at 8 a.m. on Monday, Tampa, Florida-based TECO Energy Inc. said it has entered into a non-binding letter of intent with the new buyer for the sale of all of its interest in TECO Coal, which has substantial holdings in Letcher County and elsewhere in eastern Kentucky and southwestern Virginia.
According to the release, Kentucky-based Cambrian Coal, a division of Booth Industries, was not able to come up with the money required to complete the purchase negotiations in which the companies entered last October.
TECO Energy’s statement says that while Cambrian Coal did not close on June 5 because it “could not satisfy the conditions precedent to closing,” the new buyer — which was not named — does not expect to require external financing.
“We believe that moving forward with this new buyer will provide us the best opportunity to exit the coal business for an appropriate value in the current coal markets,” said John Ramil, president and chief executive officer of TECO Energy. “The new buyer has indicated a strong interest in purchasing TECO Coal and has the financial capability to do so. We look forward to successfully completing this transaction as quickly as possible.”
TECO Coal began discontinuing daily operations at its Premiere Elkhorn, Perry County Coal and other divisions in the third quarter of 2014.
More information about the pending sale of TECO Coal will appear in Wednesday’s edition of The Mountain Eagle.