Blackjewel Files Bankruptcy
Blackjewel Holdings, LLC, filed Chapter 11 bankruptcy July 1 in U.S. Bankruptcy Court for the Southern District of West Virginia. The order was signed this morning by Blackjewel President and CEO Jeff Hoops. The Corporate Ownership Statement names Lime Rock Partners Fund V as 62.5 percent owner and Blackjewel Trust owning 37.5 percent.
According to the filing document, Blackjewel Holdings, LLC, also includes Revelation Energy, LLC, Revelation Energy Holdings, LLC, and Revelation Management Corporation.
The Campbell County Treasurer is second on the list of the coal company’s 30 largest unsecured claims with just over $37 million dollars owed in unpaid taxes. The Department of Interior has the largest unsecured claim with more than $60 million dollars owed.
A resolution signed by the company’s board of directors explains Blackjewel has been “investigating strategic alternatives for addressing the liquidity needs of the company, the company’s creditors, and other interested parties.”
Finding no other feasible option, Blackjewel has filed a voluntary petition for relief by way of Chapter 11 bankruptcy.
The filing also outlines debtor in possession financing up to $20 million to be funded by Jeff Hoops and Clearwater Investment Holdings, LLC.
A hearing on 20 or so motions already filed in the case is scheduled for noon today in West Virginia.
Several Blackjewel employees, who wished to remain anonymous, contacted County 17 over the weekend to report they had not received paychecks on Friday. However, it’s also alleged that cashier’s checks were distributed to employees over the weekend.
Blackjewel LLC bought out Contura in December 2017. The company’s Powder River Basin assets include Eagle Butte and Belle Ayr mines.