Alpha Natural Resources filed with its bankruptcy court on Dec. 14 an update on the auction process for some of its assets, which has already been approved by the judge in this case.
Alpha, one of the largest U.S. coal producers, sought Chapter 11 protection on Aug. 3 at the U.S. Bankruptcy Court for the Eastern District of Virginia.
There is a stalking horse bidder for these assets, which is a group of creditors. If any party offers a competing bid or bids, Alpha will conduct an auction for the applicable assets. The initial auction currently is scheduled to take place at offices of the debtors’ counsel, Jones Day, at 222 East 41st Street, New York, New York 10017, at 10:00 a.m. (prevailing Eastern Time) on Jan. 27, 2016. The deadline is Jan. 20 to offer a bid to get a party into the auction.
If no viable competing bid is received for a particular asset or under other circumstances described in the bidding procedures, the Alpha debtors may designate a bidder as a successful bidder for particular assets without conducting the auction.
The court’s sale hearing to consider approval of the sale(s) of the assets to the successful bidder(s), free and clear of all liens, claims and encumbrances, will be held on Feb. 9, 2016 at 10:00 a.m. (prevailing Eastern Time). The hearing will be held before Judge Kevin R. Huennekens at the court in Richmond, Virginia.
Attached to the Dec. 14 update is a list of the mines/prep plants/loadouts to be sold, along with lists of dozens of state-issued permits for those operations.
The to-be-sold operations include:
- Bandmill, West Virginia, Logan County, includes prep plant/loadout, Highlands Surface and Highwall Mines (active), Hernshaw Mine (active), Cedar Grove #2 Mine (active), and Alma Mine (active);
- Delbarton, West Virginia, Mingo and Logan counties, includes prep plant/loadout, Kielty Mine, active;
- Inman/Admiral, West Virginia, Boone County, includes prep plant/loadout, Black Castle Surface and Highwall Mines (active) and Randolph/Inman Mine (closed);
- Mammoth, West Virginia, Kanawha/Fayette/Raleigh counties, includes prep plant/loadout, Empire Surface Mine (active), Laurel Coalburg Mine (active), Republic Surface and Highwall Mines (active) and Slabcamp Stockton Mine (active);
- Sidney, Kentucky, Pike and Martin counties, includes prep plant/loadout, Process Energy Mine, active;
- Roxana, Kentucky, Letcher County, includes prep plant/loadout, EMC #9 Mine, active; and
- Litwar, West Virginia, McDowell County, includes prep plant/loadout, Horse Creek #1 Mine (active) and Lower War Eagle Mine (active).