Tuesday, April 08, 2014

James River Coal Co. files for bankruptcy, blaming weak economy and environmental regulations

"James River Coal Co. said Monday that it has filed for Chapter 11 bankruptcy protection as part of its efforts to turn around its business as it struggles along with much of the U.S. coal industry," reports the Richmond Times-Dispatch. The company, which said "it has secured $110 million in financing to keep its operations going, pending court approval," said  "it has assets valued at about $1.06 billion and liabilities of about $818.7 million. The company estimated its number of creditors at 10,000 to 25,000." (James River Coal map of operations)

The Richmond-based company, which filed for bankruptcy after missing a $208,000 debt interest payment in March, blames its financial woes on the weak economy, environmental regulations and competition from natural gas, the Times-Dispatch writes. "The company missed the payment on $13.3 million of convertible notes due in March 2018, and the company said it had a 30-day grace period — until April 14 — in which to make the payment before going into default."

James River, which"used to produce steel and for power generation in Kentucky, West Virginia and Indiana, said it "is still considering options such as selling off parts of its business," the Times-Dispatch writes. "The company also delayed filing its annual 10-K report to the Securities and Exchange Commission in March. James River Coal hasn’t posted an annual net profit since 2010." (Read more)

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