Blackhawk submits winning bid for Patriot Coal’s assets

SCOTT DEPOT, W.Va. — Patriot Coal says selling most of its assets to Kentucky-based Blackhawk Mining will save jobs in West Virginia.

Both companies announced Tuesday Blackhawk had submitted the winning bid for the assets during a competitive auction that took place Monday and Tuesday. The bid still needs the approval of a federal bankruptcy judge. A hearing is scheduled for Oct. 5.

Patriot, based in Scott Depot, declared Chapter 11 bankruptcy in May. The company’s president and CEO Bob Bennett described the auction as “robust and competitive.”

“We are pleased with the results of the auction and believe that the proposed transaction with Blackhawk is in the best interest of Patriot, and its employees and stakeholders,” Bennett said in a news release. “We look forward to obtaining confirmation of our plan and consummating this transaction, and are gratified to have a solution that preserves jobs in West Virginia, helps ensure environmental obligations are handled in a responsible manner and maximizes value for creditors. As we work to complete the sale process, we remain committed to operating safely and serving our customers.”

Blackhawk announced as part of its winning bid it plans to purchase Patriot’s Panther, Rocklick, Wells, Kanawha Eagle, Paint Creek and Midland Trail mining operations.

“We are pleased to be named the winning bidder for the Patriot assets. This was an expected result on the way to consummation of the Patriot transaction. As the winning bidder, we can now focus on obtaining bankruptcy court approval and effectuating an efficient transition of the assets,” Nick Glancy, Blackhawk’s president, said.

Coronado Coal LLC also participated in this week’s auction. It has been designated the backup bidder if Blackhawk’s bid is not accepted by bankruptcy court.

The United Mine Workers Union announced Sept. 3 it had reached an agreement in principle with Blackhawk. The terms were not announced.





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