James River Coal, once a major coal producer, is down to some remaining cash, claims against the cash and no coal mining operations, the company said in a Jan. 30 financial report filed at the U.S. Bankruptcy Court for the Eastern District of Virginia.
“On December 31, 2014 the Debtors completed the sale of the mining complexes commonly referred to as the Bell Complex and the Bledsoe Complex and certain of the assets of Laurel Mountain Resources LLC to Revelation Energy for an aggregate cash price of $2,000,000 in cash plus the assumption of certain liabilities and the retention by the Sellers of certain specified equipment and $3,000,000 of collateral,” said the report.
“Due to this transaction, the Company withdrew from the Kentucky self-insurance fund on December 31, 2014. The self- insurance fund will be responsible for future Kentucky workers’ compensation and black lung payments. The Company moved $54.5 million from workers’ compensation and black lung benefits liability to liabilities subject to compromise. The Company turned over to the Kentucky self insurance fund $41.9 million from the restricted cash account which the fund received in January 2015. The Company has recorded a preliminary gain on the sale of $29.3 million. The Company has no remaining mining operations.”
As of Dec. 31, 2014, James River Coal had $3.4m in cash and cash equivalents and $18.9m in restricted cash.
On April 7, 2014, James River Coal as a stand-alone entity, and all of its wholly-owned subsidiaries, filed voluntary petitions for reorganization under Chapter 11 at the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. It sold off other operations after that point, culminating with the Revelation Energy sale at the end of the year.
Said the filing about claims against that cash due to things like broken leases and contracts: “The determination of how liabilities will ultimately be treated cannot be made until the Bankruptcy Court approves a plan. The Debtors will continue to evaluate these liabilities throughout the Chapter 11 Cases and adjust amounts as necessary. Such adjustments may be material. In light of the expected number of creditors, the claims resolutions process may take considerable time to complete. Accordingly, the ultimate amount or treatment of such liabilities is not determinable at this time.”