Blackjewel bankruptcy case far from over
When the sale of two Wyoming coal mines between bankrupt coal operator Blackjewel and Eagle Specialty Materials closed last month, coal communities in the Powder River Basin breathed a sigh of relief. Though Wyoming miners started trickling back to work at the Eagle Butte and Belle Ayr coal mines this month under new ownership, the bankruptcy case involving their former employer Blackjewel has continued to sputter along in federal court.
It’s likely far from over.
In the latest development in the bankruptcy case that’s stretched well into its fifth month, the U.S. Interior Department submitted a motion to federal bankruptcy court Tuesday stating Blackjewel owes nearly $886,000 in royalty payments and fees for coal produced after the company filed for Chapter 11 bankruptcy.
This outstanding payment is in addition to the approximately $50 million in unpaid royalties, rent and other charges Blackjewel owed the federal government at the time the company filed for bankruptcy on July 1.
When Blackjewel filed for bankruptcy this summer, attempts to line up needed debtor-in-possession funding, or interim loans, to continue operating its 32 mines across the country flopped.
Read more: https://trib.com/business/energy/blackjewel-bankruptcy-case-far-from-over/article_dac82152-f6df-563f-a1b4-eadf3cc937af.html
(Casper Star Tribune)