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Contura Energy Inks Pact with Eagle Specialty Materials for to Powder River Basin Coal Mines

Coal News - Published on Fri, 20 Sep 2019

Image Source: markets.businessinsider.com
Leading US coal supplier Contura Energy Inc announced that it has entered into an agreement with Eagle Specialty Materials LLC, an affiliate of FM Coal LLC, related to Eagle Specialty Materials’ interest in acquiring and operating the Eagle Butte and Belle Ayr thermal coal mines located in the Powder River Basin in Campbell County, Wyoming. Subject to the completion of certain agreements with other private and governmental interested parties, the approval of regulatory and legal authorities, the occurrence of the closing and certain other covenants and conditions, Contura will be released of any and all bonding, reclamation, and operational liabilities related to the two PRB mines.

As previously announced, Blackjewel LLC, Blackjewel Holdings LLC and certain affiliated entities filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of West Virginia on July 1, 2019, and were joined by several other affiliated entities which filed voluntary petitions on July 24, 2019. Subsequently, on July 25, 2019, Contura announced that it would serve as the stalking horse purchaser for certain assets offered for sale through Blackjewel’s bankruptcy proceedings, including substantially all of the assets of the Belle Ayr and Eagle Butte mines, related facilities and equipment (Western Assets), as well as substantially all of the assets, related facilities and equipment of the S-7 Surface metallurgical coal mine commonly referred to as the Pax Surface mine, in Fayette County, West Virginia. In conjunction with the proposed transaction, Contura provided to the Debtors a cash purchase deposit of $8.1 million to be applied to the overall purchase price.

Since that time, the US Bankruptcy Court approved the terms of the sale related to the Pax Assets, including the application of USD 5.05 million of the purchase deposit toward the Pax transaction, which closed on September 17, 2019.

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Posted By : Rabi Wangkhem on Fri, 20 Sep 2019
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