Blackjewel CEO resigns as judge approves $5 million in emergency financing
A federal bankruptcy judge on Wednesday approved interim funding for the owners of the Belle Ayr and Eagle Butte mines in Campbell County. As a condition of the deal, the company’s CEO will resign.
Early Wednesday morning, the judge had denied a $20 million financing agreement for Blackjewel LLC, the owner of the two mines. But in an additional emergency hearing Wednesday afternoon in West Virginia, the court approved a loan of up to $5 million from Riverstone Credit Partners, allowing management to perform maintenance at the mines and prevent further damage while the company continues to negotiate additional financing.
The financing will not be enough to fully resume operations at the mines, which suddenly closed Monday afternoon, a Blackjewel representative said in the hearing. It will be spent exclusively on “essential” security at the mines, firefighting personnel, professional fees of up to $500,000 and other emergency expenses.
According to court documents, the loan came with the condition that Blackjewel CEO Jeff Hoops resign. The same is true of any of his family members. Additionally, Hoops and his family must not be “authorized to conduct business on behalf of the Debtors in any capacity, including by having access to any bank accounts of the Debtors.” Dave Beckman becomes the acting chief restructuring officer.
Read more: https://trib.com/business/energy/blackjewel-ceo-resigns-as-judge-approves-million-in-emergency-financing/article_0370bd12-a921-5438-a59a-e9d99e5af7ed.html
(Casper Star Tribune)