Fifth Third Bank asked a judge to award a summary judgment of $7.2 million in addition to attorneys' fees and interest because coal producer Revelation Energy LLC is allegedly in default of a loan it agreed to pay in full by Feb. 1 of this year.
The bank filed the motion for summary judgment with the U.S. District Court for the Southern District of West Virginia on Sept. 6, months after its initial complaint against the coal company. Revelation borrowed $20.0 million in 2011 and took on another $5.2 million loan in 2012 but, according to Fifth Third, Revelation has defaulted on payments associated with those loans multiple times.
The two parties had entered into a forbearance agreement, but Fifth Third claims Revelation "almost immediately" missed payments required to comply with the terms of that agreement. Since entering into the December 2016 forbearance agreement, Revelation has paid only $1.2 million toward an amount that included a $7.7 million principal, interest of $205,141 and late fees of $38,689, the bank wrote.
Revelation is affiliated with Blackjewel LLC, the coal company that bought Powder River Basin coal mines from Contura Energy Inc. in late 2017.
Revelation CEO Jeff Hoops did not immediately respond to an email seeking comment. In past filings, Revelation claimed the company came to rely on the "receptiveness and responsiveness" of the bank to help it repay the loan without defaulting but claimed that communication stopped in late 2017.