US judge rejects bankrupt coal operator’s new financing plan

CHARLESTON, W.Va. (AP) – A federal judge has rejected a proposed new financing agreement for a West Virginia coal operator that filed for bankruptcy protection earlier this week.

News outlets report a bankruptcy judge in Charleston said in a ruling released Wednesday that Blackjewel LLC must explore more alternatives in its Chapter 11 bankruptcy filing.

Milton-based Blackjewel said in a filing Tuesday that without the agreement, it would shift to Chapter 7, which would seek asset liquidation.

The nation’s sixth largest coal producer had been granted the emergency hearing on its plan to continue with new lenders after being denied a $20 million line of credit to keep its coal operations running.

The company’s two Wyoming mines abruptly closed after Monday’s bankruptcy filing.

Blackjewel also has mines in Kentucky, Virginia and West Virginia.

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