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Blackjewel to Halt Transport of Virginia Coal

Coal News - Published on Thu, 22 Aug 2019

Image Source: WYMT
A filing in a federal bankruptcy court said that Bankrupt coal producer Blackjewel LLC and the US Department of Labor have agreed to a number of stipulations that will halt the transport of coal at three sites in Virginia until the issue of idled employees receiving overdue pay is resolved. The federal government argues that the coal at three Blackjewel facilities in Raven, Honaker and Appalachia are “hot goods” produced in violation of the Fair Labor Standards Act, which prohibits the transportation of goods made in violation of minimum wage and overtime requirements.

The filing said that Blackjewel and the marketing company, Blackjewel Marketing and Sales Holdings LP, “agree that they shall not transport, offer for transportation, ship, deliver, sell, or otherwise place into commerce any coal mined, processed, or stored in Virginia, including but not limited to the Virginia Coal” at the three locations “until the issue of the uncompensated work performed on the Virginia Coal by Debtors’ employees is resolved.”

The most recently available federal data, Blackjewel filed for Chapter 11 bankruptcy protection on July 1 in US Bankruptcy Court for the Southern District of West Virginia. As the company started bankruptcy proceedings, it halted operations at its facilities in Virginia, Kentucky, West Virginia and Wyoming. The company was the country’s sixth largest coal producer in 2017.

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Posted By : Sanju Moirangthem on Thu, 22 Aug 2019
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