James River Coal okayed to sell mine complexes to Revelation Energy

The bankruptcy court for James River Coal approved at a Dec. 29 hearing a plan to sell much of the remaining assets of the company to Revelation Energy LLC.

On Dec. 22, the company filed a notice of selection of Revelation Energy as a Stalking Horse Bidder for the purchase of the debtors’ mining complexes commonly referred to as the Bell Complex and the Bledsoe Complex in eastern Kentucky and certain of the assets of debtor Laurel Mountain Resources LLC for an aggregate cash purchase price of $2m plus the assumption of certain liabilities and the retention by the debtors of certain specified equipment and $3m of collateral.

There was a Dec. 27 deadline for competing bids. There was no competing bid by that deadline, so the company on Dec. 27 asked the court for a Dec. 29 hearing on the Revelation bid and possible approval of it. The judge approved the sale motion in a written order issued late on Dec. 29.

This case is being handled at the U.S. Bankruptcy Court for the Eastern District of Virginia. James River Coal has already sold mining assets as part of its Chapter 11 bankruptcy case, begun in April 2014, and has only a few left.

The contact for the buyer is: Revelation Energy LLC, 1051 Main Street, Milton, West Virginia 25541, Attention: Jeffery A. Hoops, Fax 304-390-5975, E-mail: jhoops@revelenergy.com.

Revelation Energy was founded in 2009 by Hoops, a veteran coal executive, with financial backing from equity investor Lime Rock Partners. It has grown steadily since thewn in the Central Appalachia coalfields.

The Bell County complex is located in Bell County in eastern Kentucky. The company uses room-and-pillar mining in the Jellico and Garmeada seams. Coal is processed at a preparation plant and loaded into railcars via an integrated four-hour unit train loadout that is serviced by both the CSX Transportation and Norfolk Southern railroads.

The Bledsoe complex is located in Leslie and Harlan counties in eastern Kentucky. Room-and-pillar mining is used in the Hazard #4 and #4 Rider seams of coal. Coal is processed at one of two preparation plants and loaded into railcars at a separate location via a four-hour unit train loadout on the CSX railroad.

Said the Dec. 29 court approval: “As demonstrated by the record of the Sale Hearing and the dockets in the Chapter 11 Cases, the Debtors have demonstrated good and sufficient reasons for the Court to approve entry into the [asset purchase agreement] and the Sale. Sound business reasons have been articulated for performing the obligations set forth in the APA and selling the Purchased Assets as set forth in the APA outside of a plan of reorganization. It is a reasonable exercise of business judgment to execute, deliver and consummate the APA with the Purchaser and consummate the transactions contemplated thereby, and such acts are in the best interests of the Debtors, their estates and all parties in interest.” 

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.