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Federal Judge Approves Sale Of Wyoming Coal Mine In Houston- Report

Coal News - Published on Wed, 12 Jun 2019

Image Source: sidneyherald.com
Sidney Herald reported that a federal judge in Houston has ruled that the sale of a troubled coal mine in Kemmerer can move forward, several months after a previous sale to a Virginia millionaire fell apart. In an order filed last week in the Southern District of Texas, Judge Mr David R Jones granted the sale of Kemmerer mine to a group of secured lenders, a significant development for the mine and a community that has grappled with its future since the mine’s owners Westmoreland Coal declared bankruptcy in October.

The news comes after a number of entities including the US Department of the Interior filed objections in federal court nearly two weeks ago over a number of complications stemming from the company’s bankruptcy declaration earlier this year. The same court approved the mine’s sale to Virginia venture capitalist Tom Clarke in March.

However, that sale fell through after a dispute with the creditors of the mine’s ownership, Clarke told the Star-Tribune last month. The sale has not yet been finalized. However, there is little doubt its purchase is imminent: the sale will be funded by the debt owed to the mine’s creditors, a potential effort to minimize the group’s losses after little interest from outside investors.

According to the Wall Street Journal, Keith Alessi, chief executive officer of the lender-owned company acquiring Kemmerer, said during last Wednesday’s hearing he believed the business would be successful and have sufficient liquidity to operate after the purchase. The sale also depends on a new collective bargaining agreement with the mine workers’ union in Kemmerer.

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Posted By : Rabi Wangkhem on Wed, 12 Jun 2019
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