A federal bankruptcy judge authorized Blackhawk Mining LLC to obtain up to $25 million in an aggregate principal amount on an interim basis.
Blackhawk recently reached an agreement with lenders to secure additional funds to complete its bankruptcy reorganization and avoid a potential cash shortfall. The producer's reorganization plan and financing package eliminated $300 million in secured debt and provided $35 million for the business, but the debtor said it needed to increase its financing by $35 million.
Subject to a final additional financing order, the coal producer could receive approval for up to $35 million on a final basis, according to an Oct. 7 order filed in the U.S. Bankruptcy Court for the District of Delaware.
"The relief granted herein is necessary to avoid immediate and irreparable harm to the debtors and their estates," according to the filing.
