James River Coal closes $52 million sale to Blackhawk unit on Aug. 29

By Caroline Salls

Pittsburgh, Sept. 2 – James River Coal Co. completed the $52 million sale of assets in West Virginia and Indiana to Blackhawk Mining LLC wholly owned subsidiary JR Acquisition, LLC on Friday, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The company sold its Hazard, W.Va., assets, excluding Laurel Mountain assets, as well as the Indiana assets to JR under a second amended asset purchase agreement.

The $52 million purchase price includes $20 million in cash, a $27 million third-lien secured promissory note and a $5 million second-lien secured promissory note to be delivered to one of James River’s lessors in lieu of a cash payment of cure costs under leases to be assigned to Blackhawk under the sale.

Effective with the sale closing, Peter T. Socha resigned as chairman of the board and chief executive officer of James River Coal. Directors Alan F. Crown, Ronald J. FlorJancic, Leonard J. Kujawa and Joseph H. Vipperman also resigned from the board.

According to the 8-K, James River chief restructuring officer Murphy was elected to the board on Aug. 28.

James River, a coal company based in Richmond, Va., filed for bankruptcy on April 7. The Chapter 11 case number is 14-31848.

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