Blackhawk Mining declares bankruptcy, the third major Appalachian coal producer to declare Chapter 11 since June - Entrepreneur Generations

Blackhawk Mining LLC, a coal company that employs 2,800 people in Kentucky and West Virginia, plans to file for Chapter 11 bankruptcy later this week. "Blackhawk, based in Lexington, said in its proposed filings that the company has enough revenue to continue operating its mines during the bankruptcy and that it does not anticipate layoffs as a result of the reorganization," Will Wright reports for the Lexington Herald-Leader.

That no layoffs are expected is undoubtedly welcome news to Blackhawk employees and to a struggling region in general. Another regional coal company, Blackjewel LLC, declared bankruptcy just weeks ago, and soon after its employees discovered their last paychecks had bounced.

Blackhawk is a major employer in the area, operating 19 active underground mines and six active surface mines. It's one of the largest producers of metallurgical coal in the nation, which is a scarce global commodity used in making steel. Though it generated $1.09 billion in revenue in 2018, the company has considerable debt. That's because Blackhawk, founded in 2010, expanded by buying up mining operations from other companies' Chapter 11 bankruptcies. Blackhawk's "anticipated bankruptcy would allow the company to restructure its debt, and receive $50 million of new financing," Wright reports.

from The Rural Blog https://ift.tt/2NXxVeY Blackhawk Mining declares bankruptcy, the third major Appalachian coal producer to declare Chapter 11 since June - Entrepreneur Generations

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