by jennifer jensen, associate editor
On July 19, Blackhawk Mining, which owns mines in Kentucky, West Virginia and Indiana, filed for Chapter 11 bankruptcy. The company employees about 2,800 people.
The company said it has reached an agreement with more than 90% of its lenders on the terms of its financial restructuring. The plan will eliminate more than 60% of the company’s debt and provide $150 million of incremental liquidity, the company added. It is considered a “pre-packaged” bankruptcy that will be finalized within 60 days, according to Blackhawk.
“Today’s announcement represents a significant step in our ongoing efforts to position Blackhawk for long-term success,” said CFO Jesse Parrish. “After carefully evaluating our options, we determined that implementing these agreements through a court-supervised process represents the best way to solidify our financial position while ensuring no disruption to our employees, customers, or vendors.”
Blackhawk has entered into a restructuring support agreement with more than 90% of its lenders and more than 80% of its equity holders and has commenced solicitation on a plan of reorganization. Blackhawk and all of its wholly-owned subsidiaries will file voluntary petitions for reorganization under Chapter 11 in the United States Bankruptcy Court of Delaware.
Blackhawk has sufficient liquidity to continue normal mining operations, pay employee wages, healthcare and other benefits, and pay vendors and suppliers for all goods and services, the company said.
Headquartered in Lexington, Kentucky, Blackhawk owns nine mining operations.