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Armstrong affiliates give layoff notice to 526 Ky. workers

Armstrong Energy Inc. affiliates have given notice for 526 layoffs at western Kentucky coal mines.

Armstrong Coal Co. gave notice to 427 employees based at its Kronos Mine, Lewis Creek Surface Mine, and various preparation plants, docks and other facilities, according to a federal Worker Adjustment and Retraining Notification Act letter dated Dec. 13.

Thoroughbred Mining Company, L.L.C., gave notice to 99 employees at its Survant Mine, according to another Dec. 13 letter.

The Armstrong affiliates anticipate permanently laying off the employees beginning Feb. 14, 2018, the notices said.

Armstrong is undergoing reorganization after filing for Chapter 11 bankruptcy Nov. 1. The coal producer is planning to transfer all of its assets to a new entity jointly owned by Knight Hawk Holdings LLC and the company's secured noteholders, though Armstrong has also received an alternative offer from one of two other parties that expressed interest in the assets, according to a bankruptcy hearing.

Knight Hawk has said that it intends to lower Armstrong's costs to make the mines more competitive.

The Survant mine has produced 968,415 tons of coal so far in 2017, according to the U.S. Mine Safety and Health Administration. In the third quarter, the average employee count at Survant was 127. Kronos has produced 1.8 million tons this year and had an average employee count of 271 in the third quarter, while Lewis Creek has produced 631,409 tons to date and had an average employee count of 67 in the third quarter.