James River Coal, which entered bankruptcy in April 2014 and has since sold all of its working coal mining assets, is getting ready to basically clean out its offices as part of an effort to wind down its businesses.
“In connection with such efforts, the Debtors intend to vacate the lease at their office located at 901 East Byrd Street, Suite 1600, Richmond, VA 23219 (the ‘Richmond Office’) at the end of April 2015,” said James River Coal and related companies in a March 5 motion filed at the U.S. Bankruptcy Court for the Eastern District of Virginia. “The Debtors intend to enter into a new lease for smaller office space so that that Debtors may continue to resolve the remaining issues regarding their estates.
“Nevertheless, the Debtors currently are in possession of artwork, equipment and furniture (the ‘Miscellaneous Property’) at the Richmond Office. In light of the upcoming move into new office space, the Debtors believe that it is appropriate and in the best interests of their estates to sell the Miscellaneous Property at this time rather than incur the expenses associated with moving and storing such property. The Debtors do not believe that the Miscellaneous Property has significant value, but believe it can be sold profitably for the benefit of their estates and creditors.
“To that end, in an effort to maximize the value for the Miscellaneous Property and to sell such property in an efficient and expeditious manner, the Debtors seek to retain Motleys Asset Disposition Group (‘Motleys’), pursuant to the Consignment Contract attached hereto as Exhibit B, to market the Miscellaneous Property and to conduct an Internet auction for the Miscellaneous Property.”
James River Coal, once a major producer in Central Appalachia and a significant producer in Indiana, has in recent months auctioned off its coal properties. Now it is basically a holder of cash and other assets, with creditors trying to get as much of what they are owed as they can out of those assets through claims against the bankruptcy estate.