July 1, 2016 Read More →

Another Coal Company Files for Bankruptcy

Joshua Learn for SNL:

Blackforest Coal LLC has joined the legion of companies seeking bankruptcy court protection in the coal sector after filing for Chapter 7 liquidation June 29.

At the time of filing, the Pike County, Ky.-based coal company’s assets amounted to an estimated $22,000 in cash from the sale of equipment, $250 worth of office gear, $102.83 in the bank and a Kentucky Department of Natural Resources permit valued at nothing. The company’s total assets came in at $22,352.83.

Blackforest joins the list of around 50 coal companies that have gone bankrupt since 2012, including some of the biggest names in the industry. Arch Coal Inc. filed for Chapter 11 reorganization in January while Alpha Natural Resources Inc. filed in August 2015. Peabody Energy Corp. was the latest giant to topple, filing for Chapter 11 bankruptcy protection in April.

Bill Bissett, the president of the Kentucky Coal Association,  told S&P Global Market Intelligence that the fact that another company has gone under adds to signs of a changing industry While analysts are telling the coal industry that coal production has to match the market, Bissett says that the industry is unlikely to recover unless some change in policy allows for the building of new coal-fired power plants.

Full article ($): Bankruptcy strikes Ky. coal again taking small mining company

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