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Bankrupt Patriot Coal says it is proceeding with a partial sale to Blackhawk Mining LLC after an auction.
In a news release Tuesday, Patriot says Lexington, Kentucky-based Blackhawk Mining won an auction Monday for a substantial amount of Patriot’s assets.
The transaction and Patriot’s reorganization plan both still need approval in U.S. Bankruptcy Court in Richmond, Virginia. Scott Depot, West Virginia-based Patriot will seek the sale’s approval at an Oct. 5 bankruptcy hearing.
Patriot says Coronado Coal LLC participated in the auction and was designated the backup bidder.
Ohio, Pennsylvania and West Virginia environmental officials have expressed concerns about mine pollution cleanup in Patriot’s plan.
The Virginia Conservation Legacy Fund is looking to acquire Patriot’s other mines and mining permits for purposes of water quality improvement and reclamation.
