Judge Denies Blackjewel's Move to Liquidate
A federal bankruptcy judge has denied a petition from former Blackjewel coal executive Jeff Hoops to liquidate the company. The decision means the reorganization of the company will continue under Chapter 11 bankruptcy as former employees, creditors and state agencies seek to recover millions owed by the company.
Hoops cited “permanent negative cash flow” at his former company, which has accrued at least $80 million in administrative and other expenses since its bankruptcy filing on July 1 last year.
The nearly 3,000-filing-long Blackjewel bankruptcy docket demonstrates an 18-month scramble by the company’s creditors to recuperate as much money as possible from a too-small pot. According to court filings, Blackjewel also has multiple outstanding permit violations, an unknown amount of outstanding environmental reclamation liabilities, unpaid taxes totaling $2 million, tax liabilities of untold amounts, and millions in unpaid employee healthcare claims.
The request to liquidate, according to coal bankruptcy expert Josh Macey, was yet more proof that Blackjewel’s future was grim. “Given how long this bankruptcy has dragged on, how poor conditions for coal are right now, how speculative and unprofitable Blackjewel’s assets have been, it isn’t surprising that it’s moving to a liquidation,” Macey said.
Read more: https://www.wvpublic.org/economy/2020-12-23/judge-denies-blackjewels-move-to-liquidate