Mission Coal, which was formed in January by combining Seneca Coal Resources and Seminole Coal Resources, filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Northern District of Alabama. Altogether, Mission Coal operated two deep mines and one surface mine in West Virginia and one deep mine in Alabama with varying qualities of metallurgical-grade coal.
Mission Coal was expecting to produce 6.5 million tons of coal in 2018. The company lowered its 2018 forecast to 4.5 million tons due to transportation issues and adverse mining conditions. At the end of September, however, the company reportedly had only mined 2.1 million tons.
According to the filing, Mission Coal owes more than $32 million to 50 creditors. The largest claims include more than $9.7 million to United Mine Workers of America members’ pensions and benefits trustees, $4.9 million and $4 million to Michael Hollard and Bluestone Coal, respectively, related to litigation. The company also owes $3.2 million to Natural Resource Partners, $2.1 million to Carter Machinery and nearly $2 million to Alabama Power.