US-based Patriot Coal is set to go ahead with the sale of a substantial majority of its operating assets to Blackhawk Mining in a bankruptcy auction.
Patriot said it will seek court approval of the transaction at a bankruptcy court hearing, which is slated for 5 October.
Patriot Coal president and chief executive officer Bob Bennett said: "We are pleased with the results of the auction and believe that the proposed transaction with Blackhawk is in the best interest of Patriot, and its employees and stakeholders.
"We look forward to obtaining confirmation of our plan and consummating this transaction, and are gratified to have a solution that preserves jobs in West Virginia, helps ensure environmental obligations are handled in a responsible manner and maximises value for creditors."
According to Patriot, the transaction is subject to court approval and confirmation of the company’s proposed reorganisation plan, as well as other customary conditions.
In June, Patriot filed a letter of intent with the Bankruptcy Court for the proposed sale of its operating assets to Blackhawk Mining in the US.
Outlining the bidding procedures for the sale, Patriot also filed a motion.
Patriot did not include certain other assets in the planned transaction, which include Federal No 2 mine located in northern West Virginia, as well as some other mining assets in south-west Virginia, including Hobet 21 complex. The company has plans to sell these further ahead.
Coal producing company Blackhawk Mining has five active mining complexes and processes and sells bituminous thermal, PCI, stoker and industrial grade metallurgical coal.
Image: Patriot Coal filed a letter of intent with the bankruptcy court in June for the sale of its operating assets to Blackhawk Mining. Photo: courtesy of nipitphand / FreeDigitalPhotos.net.