James River looks to recover $2 million with suit against United Coal

By Kali Hays

New York, July 2 – James River Coal Co. filed a lawsuit on Thursday against United Coal Co. LLC looking to recover $2.29 million in payments that were made when the company claims it was already insolvent, according to a Thursday motion with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The payments were made by James River subsidiary Logan & Kanawha Coal Co. Inc. in several installments between January 2014 and March 2014, placing the payments within the 90-day period required for avoidable transfers.

James River asked that the court order United Coal to pay back the transfers, plus interests and costs, and to disallow any claims against the company from United Coal.

As previously reported, the company filed a similar action against Arch Coal Sales Co. on June 12 for the recovery of $3.22 million in allegedly avoidable transfers.

James River, a coal company based in Richmond, Va., filed for bankruptcy on April 7, 2014 under Chapter 11 case number 14-31848.

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