Richmond-based James River Coal Co. intends to sell parts or all of its business at an auction on July 8.
The company filed for Chapter 11 bankruptcy protection on April 7, saying it could no longer sustain its debt load after a steep decline in prices and demand for the coal it mines in the central Appalachian region.
James River Coal, which is continuing operations under bankruptcy court oversight, has been working with advisers for three months to find potential buyers for its business or to obtain a capital investment.
The company is seeking preliminary indications of interest by May 22, with a bidding deadline of June 30, according to filings with the U.S. Bankruptcy Court in Richmond.
The auction would be July 8, with a sale hearing in court on July 11.
Also this week, James River Coal said it has an official unsecured creditors’ committee with five members.
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The committee includes the Pension Benefit Guaranty Corp. and U.S. Bank NA, as indenture trustee for holders of senior unsecured notes. Three trade creditors round out the panel, whose formation was announced Tuesday by the U.S. Trustee, delegated by the Justice Department to create committees.
James River Coal is in its second Chapter 11 case. The prior bankruptcy ended with a confirmed reorganization plan in April 2004.
The company has interim authority to borrow $80 million, with Cantor Fitzgerald as agent. The entire $110 million loan package will provide $48.1 million in additional liquidity after some loan proceeds are used to refinance letters of credit and cover other costs.
The company listed assets of $1.07 billion against debt totaling $818.7 million. Revenue of $660 million in 2013 resulted in a net loss of $16.4 million.
General Electric Capital Corp. is a secured creditor owed $71.4 million, including $64.7 million for letters of credit. Unsecured debt includes $270 million on senior unsecured notes and $194.5 million on three issues of convertible senior notes.
