Court Rules Jeff Hoops Removed as Condition of Funding

This afternoon, Judge Frank W. Volk signed an interim order granting emergency debtor-in-possession (DIP) financing for Blackjewel LLC. However, one condition removes Jeff Hoops from the business entirely.

Court documents state Hoops and his family members, “have resigned or otherwise been removed in all capacities from each position held with the debtors (including in his capacity as a board member of any such entities) and are no longer authorized to conduct business on behalf of the debtors in any capacity including by having access to any bank accounts of the debtors or having the ability to act as signatory for, or otherwise bind the debtors.”

The court also appointed Dave Beckman, the Chief Restructuring Officer, authority to act as CEO.

-- Advertisement – Story Continues Below --

Riverstone Credit Partners has agreed to provide Blackjewel with a $5 million loan for three months. The funds are being granted for the sole purpose of implementing security measures at the coal mines that are essential to the preservation and protection of the property and equipment, and also for firefighting personnel to extinguish active fires.

In last night’s marathon hearing, Blackjewel attorney Stephen Lerner said there was an active coal fire at one of their Wyoming mines.

Also a condition of this loan, Riverstone Credit Partners will move to the top of the list for repayment.