James River Coal selects $50 million stalking horse bid for asset sale

By Kali Hays

New York, Aug. 18 – James River Coal Co. selected JR Acquisition, LLC, a wholly owned subsidiary of BlackHawk Mining LLC, as the stalking horse bidder for the sale of three mining complex facilities with a bid of $50 million, according to an Aug. 16 notice with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Specifically, the company is selling its Hampden Complex mine located in West Virginia, its Hazard Complex mine located in Kentucky and its Triad Complex mine located in Indiana.

The $50 million stalking horse bid includes a $20 million cash payment and a third-lien secured promissory note equal to $25 million, according to the purchase agreement.

JR Acquisition will also assume some liabilities related to the mining facilities.

An auction for the assets was set to take place Aug. 18.

If JR Acquisition is not the winning bidder, it will be entitled to a breakup fee of $390,000 and expense reimbursement of up to $750,000, according to the purchase agreement.

A hearing to approve the sale is scheduled for Aug. 20.

James River, a coal company based in Richmond, Va., filed for bankruptcy on April 7. The Chapter 11 case number is 14-31848.

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