Advertisement

James River Coal Agreement Filed

Advertisement

According to the U.S. Bankruptcy Court docket, James River Coal filed a motion for entry of an order authorizing the Debtors to (i) retain Great American Global Partners pursuant to the terms of the consulting agreement; (ii) sell certain equipment free and clear of liens, claims and encumbrances and (iii) abandon certain equipment. The motion explains, “Following the entry of the Blackhawk Sale Order and the closing of the Blackhawk Sale, the Debtors and their professionals continued their efforts to market and sell the Debtors’ remaining assets. As a result of such efforts, on December 22, 2014, pursuant to the Strategic Transaction Bidding Procedures Order, the Debtors filed the Notice…indicating that the Debtors had selected Revelation Energy, LLC (‘Revelation’) as a Stalking Horse Bidder (as defined in the Strategic Transaction Bidding Procedures Order) for certain of the Debtors’ remaining assets and had negotiated with such Stalking Horse Bidder the terms of an asset purchase agreement….The Debtors believe that the aggregate value of the Excluded Equipment is equal to $7 million.”

The motion continues, “Because the Debtors will no longer operate any mining complexes following the consummation of the sale of the Debtors’ assets to Revelation, the Excluded Equipment will have no further use to the Debtors. Accordingly, the Debtors have determined that it is in the best interests of their estates, their creditors and all other parties in interest to retain a third-party consultant to market and sell the Excluded Equipment. To that end, and subject to Court approval, the Debtors have entered into a Consulting Agreement (the ‘Consulting Agreement’) with Great American Global Partners, LLC (‘Great American’), dated as of December 22, 2014, pursuant to which Great American will serve as an independent consultant to the Debtors in connection with the sale of the Excluded Equipment. Importantly, the Consultant Agreement guarantees a recovery to the Debtors of at least $4,550,000 in connection with the sale of the Excluded Equipment.” For more information on JRCC, visit BankruptcyData.com.