American Indian and minority-owned Navajo Transitional Energy Company (NTEC) has received a final approval for its acquisition of three coal mines in Montana and Wyoming.
The US District Court of Delaware last week approved the sale of substantially all of bankrupt miner Cloud Peak Energy’s assets, clearing the way for the mines to the transferred to NTEC.
In August, NTEC was selected as the most qualified bidder to take over the assets of Cloud Peak, which filed for bankruptcy in May. Cloud Peak was once the third-largest coal company in the US, based on production.
NTEC CEO Clark Moseley commented in a statement that the three mines provided jobs for about 1 200 people and that it expects to assume operations in Montana and Wyoming in mid-October.
Unlike other mines in the Powder River basin owned by bankrupt miner Blackjewel, Cloud Peak continued to operate its two mines in Wyoming – Cordero Rojo and Antelope – as well as the Spring Creek mine, in Montana, throughout bankruptcy proceedings.
US coal miners are struggling to stay afloat, as cheap natural gas and renewable energy resources cut into coal’s share of the US power market.
Last week, a federal judge approved the sale of two Wyoming mines that were shut down when Blackjewel filed for bankruptcy. The court endorsement clears the path for the Eagle Butte and Belle Ayr mines to be transferred to Eagle Speciality Materials, an affiliate of FM Coal.
Ohio-based Murray Energy has also warned that it faces default, having failed to make multiple payments to lenders last week. Creditors have agreed not to take legal action until October 14.
A federal judge has approved the sale of two Wyoming coal mines that were shut down when their owner Blackjewel LLC filed for bankruptcy, finalising part of a larger deal to compensate workers including those who staged a weeks-long protest when they were suddenly left unpaid.
Unlike two neighbouring mines in the basin owned by Blackjewel, Cloud Peak continued operating its two mines in Wyoming — Cordero Rojo and Antelope — in addition to its Spring Creek mine in Montana, throughout bankruptcy proceedings.
Cloud Peak, once the third-largest coal company in the US based on production, and 27 of its affiliates, filed for Chapter 11 protection May 10 in Delaware, estimating $635-million in debts and assets of $928.7-million.