Houston — Navajo Transitional Energy Company was the winning bidder for Cloud Peak Energy's assets, following a comprehensive sale process and auction, the producer said.

"We are pleased to announce the conclusion of our robust and competitive marketing process," Cloud Peak president and CEO Colin Marshall said in the Friday announcement. "NTEC has a highly experienced management team with a strong track record as owner of the Navajo mine. As we finalize this process, Cloud Peak Energy's mines continue to operate as normal, and the company remains focused on safely and efficiently meeting our customer commitments."

As the winning bidder, NTEC will acquire Cloud Peak's Spring Creek, Cordero Rojo and Antelope mines and the producer's Sequatchie Valley reclamation project for $15.7 million, a $40 million second lien promissory note and a five-year term royalty on future tons produced.

Additionally, NTEC agreed to assume pre- and post-petition tax liabilities and federal and state coal royalty payments, reclamation obligations and up to $20 million in post-petition accounts payables.

NTEC's bid is subject to the signing of a definitive asset purchase agreement, which will be subject to approval by the United States Bankruptcy Court for the District of Delaware.

The transaction is expected to close in October, following Monday's approval from the Bankruptcy Court.

The backup-bidder was designated Aspen Coal & Energy, the Bankruptcy Court's filing said.

"We look forward to completing the transaction and enabling our mines to remain a reliable source of high-quality coal for customers for many years to come," Marshall said.

-- Olivia Kalb, olivia.kalb@spglobal.com

-- Edited by Zac Aiuppa, newsdesk@spglobal.com