CHARLESTON, W.Va. — A federal bankruptcy judge is expected to review a bid Monday, submitted by Kentucky-based Blackhawk Mining, that would allow Patriot Coal to sell most of its assets to them.
Patriot, based in Scott Depot, announced the winning bid during an auction last month after the company declared Chapter 11 bankruptcy in May.
Federal government regulators and environmentalists have said they oppose the possible approval of the bid because they say “the plan is not feasible and contains provisions that violate bankruptcy law.” Regulators in Kentucky, Ohio, Pennsylvania and West Virginia also questioned how Patriot’s environmental obligations would be fulfilled.
As part of its plan, Blackhawk said it wants to purchase Patriot’s Panther, Rocklick, Wells, Kanawha Eagle, Paint Creek and Midland Trail mining operations.
A hearing on the plan is set for Monday at a U.S. Bankruptcy court in Richmond, Va.
Patriot Coal Corporation is a producer and marketer of coal in the eastern United States, with 8 active mining complexes in Northern and Central Appalachia. Blackhawk is a privately owned coal mining and marketing company headquartered in Lexington, Kentucky.