Bankrupt US coal company secures short-term funding

CASPER, Wyo. – A U.S. judge has approved funding to allow a bankrupt coal company to maintain basic operations for a few days.

U.S. District Judge Frank Volk in West Virginia approved $2.9 million in debtor-in-possession financing Friday from two lenders to Milton, West Virginia-based Blackjewel LLC.

The money in part will allow Blackjewel to pay about 140 employees who remain at work in West Virginia, Wyoming and elsewhere.

The Casper Star-Tribune reports the move will give the company a bit more time to find additional financing.

Without a longer-term solution, the company may be forced to sell properties, including its closed Eagle Butte and Belle Ayr mines in Wyoming.

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Information from: Casper (Wyo.) Star-Tribune, http://www.trib.com

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