Haul trucks sit idle at Eagle Butte Mine July 1, 2019, after employees were escorted from the property and the gates locked.
Early this morning, after more than five-and-a-half hours of testimony, Judge Frank W. Volk of the Southern District of West Virginia denied Blackjewel LLC’s emergency motion to secure post-petition financing.
“The circumstances of this rapidly-unfolding case, that is unlike any I have seen, or read about, or taught about, demand a prompt ruling,” Volk said in the hearing. “I’m making that ruling on the evidence presented today.”
Volk ruled that the debtor, which includes Blackjewel LLC, Blackjewel Holdings LLC, Revelation Energy Holdings LLC, Revelation Management Corporation, and Revelation energy LLC, did not satisfy their burden of proof under Chapter 11.
“Moreover, I find that the proposed terms of the debt facility would unduly prejudice the rights of other parties and interests, in the majority of which have not had an opportunity to be heard, given the unusual circumstances that have been presented.”
Volk went on to say he did not believe all available alternatives had been exhausted, and he encouraged the parties to continue negotiations to preserve the value of the company.