Deadline Looms For Court To Approve Latest Attempt To Sell Eagle Butte & Belle Ayr Surface Mines In Campbell County
Written by Basinradio on October 2, 2019
Jeffries, LLC, the investment bankers for the bankrupt coal company, Blackjewel said in a court filing Tuesday that the federal bankruptcy court in West Virginia has until October 7th, 2019 to approve a deal for Blackjewel’s so called Western Assets to be sold to Eagle Specialty Materials, LLC.
Robert J. White, Managing Director for Jeffries told the court in a ‘declaration of support’ that beyond the October 7th deadline the end-user contracts for the coal in those two mines might very well be cancelled.
An earlier deal to transfer the mines back to their former owners, and current lease holder, Contura Energy foundered on Contura’s inability to reach a deal with the federal government over past due royalty payments.
In connection with the proposed sale of the Western Assets to ESM, Contura and Blackjewel have agreed that upon closing of the sale of the Western Assets to ESM, Contura will waive its right to seek repayment of the $3.05 million remaining portion of the Purchase Deposit.
Additionally, Contura will pay ESM $90,000,000 as an inducement for its purchase the Western Assets; and convey to ESM its right, title, and interest in certain Ranches and any other surface and/or mineral estates owned by Contura, or its controlled affiliates, in Wyoming.
ESM will also be assuming approximately $250 million of ARO liabilities related to the Western operations.