James River Coal, once a prominent operator in Central Appalachia and the Illinois Basin, said in a bankruptcy court filing it has no mining operations left after closing on the sale of several Central Appalachian assets to Revelation Energy LLC.
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James River, based in Richmond, Virginia, received $2 million in cash plus the assumption of certain liabilities by Revelation for the Bell and Bledsoe thermal coal complex and unspecified assets of Laurel Mountain Resources in Central Appalachia.
Lisa Henson, chief financial officer for Milton, West Virginia-based Revelation, did not respond to a request for comment Monday. James River officials could not be reached for comment Monday. Revelation is a privately owned company.
In the filing in the US Bankruptcy Court for the Eastern District of Virginia, James River said it has also completed the sale of assets at its McCoy Elkhorn complex in eastern Kentucky to Opes Resources for $3.1 million.
James River's largest sale was to Blackhawk Mining of Lexington, Kentucky. On August 29, 2014, Blackhawk paid $52 million for James River's Hampden assets in West Virginia and Hazard assets in eastern Kentucky.
Blackhawk also acquired Triad Mining, operator of several underground and surface thermal coal mines in southern Indiana, part of the high-sulfur Illinois Basin.
The deal is expected to help Blackhawk expand thermal coal production to more than 10 million st/year starting in 2015.
In December, James River had $5.7 million in coal sales revenue but its cost of sales totaled $9.6 million, leaving it with a nearly $4 million gross loss, according to the filing.
James River and 33 affiliates filed for Chapter 11 bankruptcy reorganization on April 7, 2014. The company recently was given more time by a federal judge to prepare and file a Chapter 11 reorganization plan.