The result is now awaiting approval by the court at Patriot’s next case hearing on October 5. Should it be given the green light, it will help to solidify the infrastructure of the trouble miner’s plans for its proposed Chapter 11 plan.
Privately held Blackhawk was originally named the stalking horse bidder in the planned auction earlier this year. It already has Kentucky, Indiana and West Virginia operations, and the takeover would add Patriot’s Panther, Rocklick, Wells, Kanawha Eagle, Paint Creek and Midland Trail complexes to its portfolio.
Blackhawk also acquired James River Coal’s (JRC) assets in a bankruptcy sale in 2014.
“We are pleased with the results of the auction and believe that the proposed transaction with Blackhawk is in the best interest of Patriot, and its employees and stakeholders,” said Patriot President and CEO Bob Bennett. “We look forward to obtaining confirmation of our plan and consummating this transaction, and are gratified to have a solution that preserves jobs in West Virginia, helps ensure environmental obligations are handled in a responsible manner and maximizes value for creditors. As we work to complete the sale process, we remain committed to operating safely and serving our customers.”
Another qualified bidder, Coronado Coal, has been named a backup bidder should the Blackhawk transaction not be approved.