As Blackjewel bankruptcy case enters final stretch, uncertainty looms
Nearly one year ago, two of the largest coal mines in the nation ground to a halt when the owner abruptly filed for bankruptcy and failed to secure interim funding.
June 29, 2020
Nearly one year ago, two of the largest coal mines in the nation ground to a halt when the owner abruptly filed for bankruptcy and failed to secure interim funding. Hundreds of Wyoming workers were sent home indefinitely.
The Eagle Butte and Belle Ayr mines in the Powder River Basin have since come back online under new ownership. But the turbulent bankruptcy case involving coal firm Blackjewel continues and appears far from fully winding down. Several outstanding issues — from fraud allegations to a lingering dispute over shovels and unhappy creditors — have prevented the debtors from formally exiting Chapter 11 bankruptcy.
On Wednesday, the U.S. Bankruptcy Court for the Southern District of West Virginia held a status conference on the case, advancing some matters to evidentiary hearings and once more underscoring just how complicated a bankruptcy case can become.
According to recent court filings, parties involved in the case have yet to reach a “consensual plan of liquidation,” or agreed upon terms under which the bankrupt company can formally exit bankruptcy and distribute its assets to the creditors it owes money to.