Court okays sale of coal assets of Licking River Resources affiliates

A judge in the U.S. Bankruptcy Court for the Eastern District of Kentucky on Jan. 7 approved an auction procedure and schedule for coal-producing affiliates of Licking River Resources, which have been in chapter 11 protection since May and June of 2014.

The order covers the sale of any and all assets of J.A.D. Coal Co., Fox Knob Coal Co. and Sandlick Coal Co. LLC, which are collectively and commonly referred to in these bankruptcy cases as the “JAD Debtors.”

On or before Feb. 9, any party asserting a right to credit bid including, without limitation, the Licking River Lenders and the JAD Lenders, need to file a notice of right to credit bid with the Bankruptcy Court setting forth the assets to which it asserts a right to credit bid, the amount of its claim to which it asserts a right to credit bid on the assets and thecomponents of that claim (i.e., principal, accrued interest and any other charges), and evidence of its secured status on any assets to which it asserts a right to credit bid. Any objections to a credit bid notice has to be filed by Feb. 13.

On or before Jan. 16, the Debtors shall file in the record of these cases a schedule of all equipment to be offered for sale pursuant to this court order that clearly identifies each piece of equipment, including any applicable by serial or other identifying number.

The sale hearing to consider the sale of substantially all of the JAD Debtors’ assets, including assumption and assignment of contracts and leases, is to be held on Feb. 27 in the the court building in Lexington, Kentucky.

The “Assets” to be sold consist of substantially all assets, real, personal, mixed, tangible and intangible, connected with the going-concern operations of the JAD Debtors’ coal mining business, including but not limited to, and as may be more further negotiated or changed with any qualified bidder:

  • all buildings and improvements owned by any of the JAD Debtors and any related leasehold rights of the JAD Debtors in such related unexpired leases that are assumed and assigned;
  • any contractual rights of the JAD Debtors relating to such mining operations as are assumed and assigned;
  • all equipment, fixtures and other personal property of the JAD Debtors’ relating to such mining operations;
  • all coal inventories of the JAD Debtors relating to such mining operations;
  • all other inventories on hand relating to such mining operations or otherwise owned by the JAD Debtors on the date of Closing;
  • copies of property records relating solely to the mining operations, and copies of certain personnel and payroll records relating solely to the employees who were employed by the JAD Debtors immediately prior to the closing;
  • all necessary contracts not described above;
  • all necessary permits to the extent transferable; and
  • all trucks, trailers, and related motor vehicle equipment owned by the JAD Debtors.
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.